By Dave Bean, FMW Associate Editor
October 18, 2023
There is reason for optimism in the new commercial vehicle market, according to a recently released report from Work Truck Solutions. Their 2023 3rd Quarter Commercial Vehicle Market Analysis shows a marked uptick in demand for new work trucks and vans. Meanwhile, according to the same report, used work vehicles, including trucks and vans, are still being heavily relied upon – possibly a ramification of the supply issues that impacted all industries.
As a result of the demand for new work trucks, average prices for these vehicles increased by almost 6% since last quarter and by more than 8% since last year. To maximize the situation and keep customers satisfied, dealers have bolstered their on-hand stock by more than 12% since last quarter and a whopping 79% since last year. One of the effects of dealers having more vehicles on-hand is that the turn rate has improved – up 2% since Q2 and a remarkable 46% since the 2022.
As for new truck and van sales, they’ve understandably slowed up a bit in Q3 since much of the suppressed demand had been met in the previous two quarters. Still, when looking at year-over-year figures, sales were up by more than 15%.
Looking at the commercial used vehicle market, average prices rose unremarkably from both last quarter and last year, while dealer inventory dipped just over 5% from Q2 and without any noticeable change from the previous year. Turn days cooled off 4% from the previous quarter yet remained virtually unchanged from last year. With the focus on available new trucks, it makes sense that used sales declined just a bit in Q3. However, there was still a healthy increase in used commercial truck sales over last year – up 12%.
“As we analyze the market for work trucks and vans, the data indicates continued strong interest in new vehicles, even as the average price for them has hit a record high of $57,290,” says Aaron Johnson, CEO of Work Truck Solutions. “These insights signal a potential shift towards newer commercial vehicles—especially a desire for medium-duty—requiring strategic adjustments to inventory and a careful watch on these trends, including the upfit configurations that are critically important to buyers in your market. Having the tools to ride these waves is what will set some dealers apart from those that try to return to ‘business as usual’.”
For more on Work Truck Solutions, click here.
