December Market Conditions Underperformed Expectations

Power Valuation Services reported that Class 8 auction volume increased dramatically in December, and pricing dropped more than expected.

Metadata
Provider: 
Business Wire, Inc.Business Wire, Inc.
Retrieved on: 
Tuesday, January 21, 2020
Information
Tags: 
Transport, Trucking, Motor vehicles, Vehicles, Trucks, Buses, Cab over, Vans, Vehicle design, Pricing, Transport
Geotags: 
United States, Virginia
⚠ generated by AI ↴
Organisation: 
J.D. POWER AND ADVERTISING/PROMOTIONAL RULES
Summary
Key Points: 
  • Power Valuation Services reported that Class 8 auction volume increased dramatically in December, and pricing dropped more than expected.
  • Trucks sold retail also lost value, as the market continues to lose tolerance for trucks with anything other than low mileage.
  • The medium-duty market was mixed, with cabovers stable, Class 4 conventionals mildly weak and Class 6 conventionals recovering.
  • Since January is typically a slow month for volume, we dont expect much change in the market, said Chris Visser, Commercial Truck Senior Analyst at J.D.


In the January 2020 Commercial Truck Guidelines Industry Update, analysts from J.D. Power Valuation Services reported that Class 8 auction volume increased dramatically in December, and pricing dropped more than expected. Trucks sold retail also lost value, as the market continues to lose tolerance for trucks with anything other than low mileage. The medium-duty market was mixed, with cabovers stable, Class 4 conventionals mildly weak and Class 6 conventionals recovering.

“Since January is typically a slow month for volume, we don’t expect much change in the market,” said Chris Visser, Commercial Truck Senior Analyst at J.D. Power Valuation Services. “A bright spot for 2020 will be fewer trade returns compared to those we saw in 2019. However, working through the industry’s major surplus of trucks in inventory comes first.”

Major findings in the free monthly report note:

  • Volume up, pricing down at auction
  • Volume and pricing both subdued in the retail channel
  • Medium-duty market mixed

Also see expanded analysis of our longer-term outlook in this edition.

Download the free January 2019 Commercial Truck Guidelines Industry Update.

J.D. Power Valuation Services (formerly NADA Used Car Guide) is a leading provider of vehicle valuation products and services to businesses. The team collects and analyzes more than 1 million automotive and truck wholesale and retail transactions per month, and delivers a range of guidebooks, auction data, analysis and data solutions.

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, South America, Asia Pacific and Europe.

About J.D. Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

Copyright: 
Copyright Business Wire 2020