Used Truck Auction Rates Mostly Drop for July 2023
J.D. Valuation Services has given another update on the prices that used Class 8 vehicles are going for at auction. For the most part, the data is to be expected: as vehicles get older, their value decreases. One model year, however, has bucked that trend.
July 2023 Numbers
- Model year 2021: $63,974, which is $12,420 (16.3%) lower than in June.
- 2020: $66,925, an increase of $5,900 (9.7%) from the prior month.
- 2019: $42,068. Compared to June, this is a decrease of $1,670 (3.8%).
- 2018: $29,077, a drop of $1,165 (3.9%).
- 2017: $21,542; $119 cheaper (0.5%) compared to June.
Why did one of the model years appreciate so sharply compared to all of the other model years? We have a hypothesis, and it points to everyone’s best friend: COVID-19.
Model year 2020 production was a significantly shorter timeframe than the years surrounding it. This is because the pandemic shut down the economy in areas deemed “non-essential”, as we are certain you all know. As a result, 2020 big rigs are harder to come by than any other truck, making them a bit of a luxury good, in a sense, as their higher price makes them more desirable. Ultimately, as with all trucks, the miles will catch up with them and they will invariably decrease in price.
Conclusion
It is almost a forgone conclusion that the used Class 8 truck auction prices will continue to drop as trucks depreciate. We say “almost” because there was a short period in history where demand for trucks was so high that used vehicles were actually selling for more than they were before, but that is the exception rather than the rule.
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