Depreciation

Unraveling the mystery of electric trucks’ residual values 

The regulation-driven purchase of commercial electric trucks carry a lot of unknowns. One of the biggest is their residual value, or how much they will be worth as trade-ins.

Rich Mohr, senior vice president of North America ChargePoint, said the past is a prelude for what is happening with first-generation electric trucks.

Depreciating electric trucks to scrap value

“Three years ago, the biggest risk around fleets adopting electric vehicles was the residual value and the [anticipated] life of...

https://www.freightwaves.com/news/unraveling-the-mystery-of-electric-trucks-residual-values

New Class 8 truck deliveries fall for 4 consecutive months  

The strength in new Class 8 orders belies a four-month slide in deliveries while used truck prices continue to fall, albeit more slowly as 2023 comes to a close.

Through the first 11 months of the year, the industry has delivered 242,881 new Class 8 trucks, 7.8% more than the same period in 2022, according to Ward’s Intelligence. But the year-over-year lead has shrunk each month since February when sales were 35% ahead compared with 2022.

This contrasts with ACT Research, which reported net...

https://www.freightwaves.com/news/new-class-8-truck-deliveries-fall-for-4-consecutive-months

Why the used trucks pricing bubble finally burst

After leaking for several months, the air is nearly evacuated from the used truck pricing bubble as increased production of new trucks allows fleets to finally trade their aging iron.

Prices at auction are about 25% higher than the last pre-pandemic peak, according to J.D. Power Valuation Services. At the peak of the pricing bubble, used trucks sold for as much as149% more than they did before COVID hit in March 2020.

The depreciation grew heavier in December. A lot of auctions and sellers...

https://www.freightwaves.com/news/why-the-used-trucks-pricing-bubble-finally-burst

Break-even values dictate used truck trade-ins

Row of used trucks

Final numbers for Class 8 used truck sales in April dipped further even as prices continued to fall amid swelling inventories.

With practically no new trucks ordered or sold during the month, already slow-selling used equipment felt the brunt of the COVID-19 pandemic.

ACT Research said same-dealer sales fell 15% from March and 7% from April a year ago. Used trucks were older, sold for less and had fewer miles on the odometer than in March.  

“Most dealers are reporting used truck sales have slowed...

https://s29755.pcdn.co/news/break-even-values-dictate-used-truck-trade-ins