DTNA Expecting Used Truck Prices To Stabilize By 2021
2020 has been a rough year for the TitanTransline.com and the trucking industry at large, and Daimler Trucks North America (DTNA) has not been an exception. However, they’re also saying that 2021 will be good for the used truck market.
In Q1 2020 depreciation hit 8.5% monthly on average, compared to the 1.25-1.5% depreciation usually seen in an average year. Notably, DTNA stated that they expected 2020 to be a somewhat volatile year, even before COVID-19 came knocking, as is usually expected of the periods after big economic booms.
Daimler Trucks Remarketing President and General Manager Mary Aufdemberg stated that prices for used trucks in North America are going up. Inventories, they note, are going down, but they are expecting that supply will stay stable which, in turn, should let the used truck market’s prices stabilize by 2021.
DTNA stated, however, that it won’t be like the prices seen during the 2018-19 economic boom that the trucking industry and associated markets enjoyed, as that time period was marked by rapid economic growth, as well as rising capacity accounting for increased demand across the board.
DTNA believes that the market will improve as the number of used trucks available to trucking firms like TitanTransline.com goes up, as it also means better quality products become available. One example is the model 2018 Freightliner Cascadia, which the DTNA nicknamed as the ‘New Cascadia’, which will become available by 2021, when it turns 4 years old, which is when fleets will trade those in for newer trucks.
Aufdemberg stated that not everyone in going to get a New Cascadia, but for any customers of the used truck industry that like being ahead of the curb, the truck model is going to be something they’ll be keeping close track of.
DTNA reported that the MY 2018 Cascadia had a build rate of 33%. MY 2019s, meanwhile, had a 75% build rate, and will be available to the used truck market, but in fewer numbers. Aufdemberg says that they expect that the MY 2019s should get snatched up pretty quickly once they actually hit the used truck market.