If you didn't see our recent release about Q1 2023 commercial vehicle data highligting continued demand and slowly rising inventory levels, along with other key metrics, I'm including it here. If you'd like to chat more about the data and what we're seeing, please reach out.
Regards,
Work Truck Solutions
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Slowly Increasing Inventory and Continued Demand Fuel Commercial Vehicle Industry
Steady predictable trends a welcome phenomenon in light of tumultuous history
Chico, CA, April 18, 2023 (GlobeNewswire) -- Work Truck Solutions®, the leading authority on commercial vehicles, today released their Q1, 2023 Commercial Vehicle Market Analysis. The slow but steady increase of inventory available from OEMs is affecting commercial vehicle sales in predictable ways.
Inventory
With Ford leading the charge among OEMs, new on-lot inventory per dealer continued to grow: +10.8% QoQ and +46.4% YoY.
With new inventory levels still only 46.3% of what they were in 2019, used vehicles continued to help fill the demand, as evidenced by the rise in used on-lot inventory per dealer, up 125.4% YoY.
Prices
Average used vehicle prices continued their modest decline: down 1.7% QoQ and 4.3% YoY.
Continuing the trend we’ve seen since Q2 2022, both new work trucks and vans still carry a significant price tag with prices increasing 2.4% QoQ and 4.1% YoY.
Within new vehicle averages, Empty Cargo Vans by themselves showed no signs of stagnation with prices rising:
5.0% QoQ and 5.8% YoY for Light duty work vans, and
1.6% QoQ and 7.8% YoY for Medium duty vans.
The prices of Service Trucks also continued their upward trend with:
Light duty up 1.9% QoQ, and 6.9% YoY, and
Medium duty up 1.5% QoQ and 6.0% YoY.
The median mileage of used work trucks and vans maintained its upward arc, with increases of 6.3% QoQ and 11.6% YoY.
Although the combination of higher mileage and more available new vehicles is influencing the decrease in used-vehicle prices, unmet demand is slowing that decrease. There is a slight increase in days-to-turn that shows both new and used inventory staying on dealer lots longer, a trend we’ll keep a close eye on in the coming months.
“An interesting note in this data is that even with higher new-vehicle prices, searches for new trucks and vans remained strong, demonstrating that customers are still dependent on replacing, and adding, vehicles for their businesses,” said Aaron Johnson, CEO of Work Truck Solutions. “On the other side of the equation is an uncertain economy, inflation, and rising interest rates. Taking all of this information in aggregate means the commercial vehicle industry is likely moving into not only a more competitive phase, but a world where digital tools to help buyers with acquisition, like CV Showroom™ and EZ Order™, are necessary for dealerships to thrive. Plus, savvy dealerships will need to utilize data-driven insights to position themselves as business partners rather than mere vendors.”
About Work Truck Solutions
Work Truck Solutions is the smart technology platform that serves the Commercial Vehicle Industry. The end-to-end solutions such as Comvoy.com, the national commercial marketplace, and CV Showroom™, the smart digital catalog of commercial vehicles not in stock, connect the dots between commercial vehicle buyers, dealers, manufacturers and upfitters. This innovative technology is the one-stop inventory management, operational analytics, and digital marketing solution that maximizes commercial sales, customer relationships and profitability.
Key definitions:
Empty Cargo Van: a van with an open cargo area that can be configured with shelves, storage areas, etc. as needed for specific vocational use cases.
Service Truck: an open-bed truck with lockable compartments on the outer edges used for tool and equipment storage.
Light/Medium Duty: this designation refers to the vehicle’s gross vehicle weight rating, and may also factor in the gross trailer weight rating. Medium duty vehicles have higher ratings/capacities than Light duty vehicles.
