After a record year of heavy duty truck orders in 2018, the increase of new truck delivers will most likely raise depreciation of the units they are replacing. The pace of this probable increase in depreciate is uncertain, Black Book reports.
As new truck customers continue to wait on deliveries to arrive, sometimes for months, fleets are relying on late model used trucks. This held used truck values higher than normal in January. When these new trucks arrive and fleets make the switch over, used truck inventory will increase.
“Trucks are moving in and out of service faster and we will be watching to see how much wholesale values are affected," said Charles Cathey, heavy duty truck and commercial trailer editor at Black Book.
As for medium duty used truck, new truck orders remains strong as construction and delivery business thrive in 2019.
“Wholesale prices continue to stabilize as demand grows for units in these segments to satisfy regional delivery and construction needs," Josh Giles, Black Book's senior truck editor, said.
However, Black Book cautions this doesn't always translate into an increase in used supply because operators in these segments are not always replacing trucks. Instead, companies are finding second and third uses for these units.
