Market Correction Could be Maturing
DECEMBER 2023 COMMERCIAL VEHICLE MARKET UPDATE
CLASS 8 AUCTION UPDATE
Depreciation is relaxing as 2023 comes to an end. Late-model trucks with average or lower mileage for their age have lost less than 4% of their value each month in the fourth quarter, and trucks with higher mileage have probably seen the worst of their devaluation.
Looking at three- to seven-year-old trucks, average pricing for our benchmark truck in November was:
Model year 2021: $64,105; $3,080 (5.1%) higher than October
Model year 2020: $46,911; $5,562 (10.6%) lower than October
Model year 2019: $30,740; $825 (2.6%) lower than October
Model year 2018: $28,236; $2,047 (7.8%) higher than October
Model year 2017: $19,189; $3,328 (21.0%) higher than October
Four- to six-year-old trucks brought 3.9% less money than in October, and 40.2% less money than November 2022. In the first 11 months of 2023, late-model sleepers brought 41.6% less money than the same period of 2022. Monthly depreciation in 2023 is now down to 4.0%. Values for the newest model years available in the marketplace remain just under the strong pre-pandemic period of 2018 in nominal figures, or just more than 20% less if adjusted for inflation.
