Auction Prices Have Slight Rise in November 2022
J.D. Valuation Services has reported the average auction prices for used Class 8 trucks in November 2022. It is what we had anticipated the month prior: the intersection of supply and demand determining price is still the king of economics.
November 2022 Details
- Model year 2020: $96,350: an increase of $7,325 (8.2%) from the month prior.
- 2019: $77,767; $3,229 (4.3%) higher than October 2022.
- 2018: $59,259. This is a decrease of $4,090 (6.5%), and the only decrease for the month.
- 2017: $40,126; a $1,542 (4%) increase from October.
This marks a trend reversal of the past few months, where prices have been steadily dropping.
Additionally, Chris Visser reports that on average, truck models from three-to-six years ago are roughly 83% the price they were in November 2021.
The most obvious culprit for the rising prices is the holiday season: the busiest time of the year for the trucking industry, fleets are scrambling to get their hands on trucks. A less immediate but still important factor for higher used heavy-duty truck prices is the production backlog for new trucks in 2023. While the industry has been breaking records for new truck sales due to pent-up demand, the demand is still straining manufacturers, with the 2023 backlogs almost certainly full before the new year even begins. As such, fleets are turning to the used market for additional capacity.
Conclusion
Used truck prices and order backlogs for new trucks are closely related to one another: as one increases, you can expect the other to increase in step with it.
Generally speaking, fleets purchase trucks ahead of time to prepare for upcoming changes in the market, but these are extraordinary times, and as such fleets might have still been clamoring to get their hands on trucks in December regardless. We will have to wait and see what the used prices for December will be.
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