Auction Devaluation Continues
Auction volume increased for another month, and most sleeper tractors brought noticeably less money than February 2024. Most late-model sleepers moving through auction channels are marked by extremely high mileage for their age.
CLASS 8 AUCTION UPDATE
Auction volume increased for another month, and most sleeper tractors brought noticeably less money than February 2024. Most late-model sleepers moving through auction channels are marked by extremely high mileage for their age.
Looking at late-model sleeper tractors, average pricing for our benchmark truck in March was:
- Model year 2022: $96,970; $12,220 (14.4%) higher than February
- Model year 2021: $49,816; $4,661 (8.6%) lower than February
- Model year 2020: $31,793; $5,271 (14.2%) lower than February
- Model year 2019: $27,206; $3,911 (12.6%) lower than February
- Model year 2018: $21,498; $3,293 (13.3%) lower than February
Note that the very small number of model-year 2022 trucks sold each month means our average will fluctuate widely, and the figure above is not representative of actual market movement. Otherwise, late-model sleepers brought 7.2% less money than in February, and 34.0% less money than in March 2023. Values for the newest model years available in the marketplace are now about 6% lower than the strong pre-pandemic period of 2018 in nominal figures, or about 24% lower if adjusted for inflation. Current pricing is about 51% higher than the last market nadir in late 2019, or about 24% higher if adjusted for inflation. Depreciation in 2024 is averaging 7.2% per month.
Market performance in the first quarter of 2024 was defined by a return to depreciation after a stable period of 4-5 months. This second wave of devaluation appears to be a combination of individuals and small fleets leaving the industry—frequently a result of loan default—and ongoing trade activity as new equipment is received. Late in 2023, price stabilization suggested the market was absorbing this increased inventory. That dynamic changed as the 2024 market opened up in February. Note the ongoing liquidation of Yellow Corp. single axle daycabs did not appear to have affected the value of tandem axle daycabs in March.
