Class 8 Retail Market Holding Steady Despite Pressures
May’s retail pricing was similar to April’s, with spec and model mix accounting for month-over-month variation. Market weakness in the auction channel did not carry over to the retail channel.
The average sleeper tractor retailed in May was 69 months old, had 456,127 miles, and brought $57,613. Compared to April, the average sleeper was 2 months younger, had 12,103 (2.6%) fewer miles, and brought $815 (1.4%) more money. Compared to May 2018, this average sleeper was 1 month older, had 7,950 (1.8%) more miles, and brought $4,551 (8.6%) more money.
Looking at trucks three to five years of age, May’s average pricing was as follows:
- Model year 2017: $93,430; $4,604 (5.2%) higher than April
- Model year 2016: $68,297; $1,939 (2.8%) lower than April
- Model year 2015: $57,137; $532 (1.5%) lower than April
The high average for model year 2017 is due to a group of owner-operator spec trucks in the data. On an apples-to-apples basis, there was little change in value month-over-month. Year-over-year, late-model trucks sold in the first five months of 2019 brought 12.3% more money than in the same period of 2018. Depreciation in the first five months of 2019 averaged 1.3% per month, compared to 1.6% in the same period of 2018.
With economic measures increasingly impacted by headwinds, keep a close eye on fundamentals. If the slowing growth becomes more dramatic, expect an equally dramatic increase in used truck supply.