Used Truck Auction Rates Fluctuate in August 2023
In an unexpected turn of events, J.D. Valuation Services reports that model years at the auction decreased in value if they were newer and increased if they were older. It is quite the interesting phenomenon.
August 2023 Used Auction Numbers
- Model year 2021: $63,375. This is a decrease of $599 (0.9%) from July.
- 2020: $59,543, a drop of $7,382 (11.0%) from the month prior.
- 2019: $33,469, a sharp decline of $8,599 (20.4%) from the seventh month of the year.
- 2018: 29,432; $355 (1.2%) more than in July.
- 2017: $22,136–a slight increase of $594 (2.8%).
J.D. Valuation Services states that this is the first time since the COVID-19 pandemic that truck rates are at or below their 2018 rates, meaning that nature (the trucking industry) is healing and things are starting to make sense again. Gone are the days of purchasing a truck now with expectation to sell it at a later date for a higher price as if it were some sort of commodity like gold or foreign currency. It is a good thing that used trucks did not fall into the hands of speculators attempting to make a quick buck, otherwise our economy may have taken significantly longer to heal than it has.
Conclusion
J.D. Valuation Services pins the average depreciation rate of a commercial vehicle at 4.8%. While that means the trucks are cheaper as time goes on, they accumulate wear and tear. It is up to you to determine the best balance between price and quality, whether that is a new 2024 model coming soon or an absolute clunker from 2010.
If you have made up your mind on what the best price point is for you and your fleet, you can count on TopMark Funding to get you the best funding rate for your particular credit scenario. We work with an ever-growing number of funding partners to help logistical businesses get more assets and increase their bottom line, as well as their return on their equity. Read on below to learn more about what we can do for you!
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