Class 8 Auction Pricing Down Month-Over-Month

The winter lull in auction activity is behind us, and March data provided our first real look at how the market is holding up in 2019. Volume of our benchmark model was up by an expected proportion over February, but fell well short of last March. Pricing was notably lower month-over-month, with a high-mileage mix of trucks partly responsible for the decrease. See below for detail.

Why has the Boom in New Truck Sales Not Yet Resulted in an Influx of Trades?

For over a year now, I’ve been cautioning dealers, OEM’s, finance companies, and anyone else with skin in the game to expect an eventual increase in trade-ins and corresponding decrease in used truck values. After all, the economy can only support so many trucks, right? Well, turns out the economy actually grew enough to absorb the increased number of new trucks put into service, and then some. This time around, any downturn in used truck values will hinge more on economic conditions than supply of incoming trades. Economic data and yearly delivery figures explain the situation.