Average Fair Market Value (FMV) for used commercial vehicles continued to decline last month, dropping another 0.6% in April, according to the latest Price Digests Commercial Truck Report.
However, this decline is expected given the high demand (and backlog) for new Class 7 and 8 vehicles in North America, the report adds. Average Forced Liquidation Value (FLV) and auction activity normalized in April 2019 after a seasonally strong month in March.
In other market highlights, the report notes:
- Average FMV for trucks on the resale channel declined significantly in April from a year prior, with a 14% average drop.
- The average age on the resale channel held relatively steady from March to April, but fell nearly 17% newer than in April 2018.
- Both resale activity and auction activity contracted in April, even as average FMV decreased slightly and average FLV increased.
The report forecasts that, although declining average FMV and increasing average FLV are trending towards convergence, a return to a strong gap between the two channels is anticpated over the summer of 2019.
The Price Digests Commercial Truck Report is a monthly analysis of key market performance indicators covering heavy and medium-duty commercial truck market insights for insurance, finance, fleet management, valuation, and property tax professionals.
What's inside
An analysis of resale and auction commercial truck markets:
- FMV and FLV Trends
- Market Forecasting
- Top Brand Trends (Freightliner, Kenworth, Volvo and more)
- Market Volume
- Market Insights
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