New Commercial Vehicle Prices Rose 6.5% in 2023

Work Truck Solutions recently released its 2023 Annual Commercial Vehicle Market Analysis, showing business owners continue to need and purchase commercial vehicles no matter the circumstances around them.  

The latest analysis highlights:

• Average new vehicle prices increased 1.0% QoQ for 4Q and 6.5% YoY.
• On-lot per dealer work truck inventory continued to grow, up 20.0% QoQ and a whopping 87.4% YoY, with Medium-Duty vehicles making up over half of the on-lot mix.
• Average Days to Turn (DTT) is likely being influenced by the increase in available inventory and showed a slight increase QoQ (9.2%) and a significant increase YoY (52.2%). Last year, limited inventory was often sold before hitting the lot.
• Movement of new vehicles increased to the highest value for the year, up 7.8% QoQ and 17.0% YoY.

Used Commercial Vehicle Data for 2023

For used commercial vehicles, the report shows:

• Median mileage of used work trucks and vans increased 5.9% QoQ and 10.1% YoY. 
• Average used vehicle prices decreased 2.1% QoQ and 1.8% YoY.
• Onlot Inventory has been in a decline and fell 6.2% QoQ and 12.1% YoY.
• Average DTT showed a slight increase QoQ of 6.0% and 6.8% YoY. 
• Movement numbers fell at an accelerated rate in 4Q, with average moved used work trucks/vans per dealer decreasing 8.7% QoQ and 10.8% YoY.

Commercial Alt-Fuel Vehicle Data

The future of the commercial vehicle market is in the very early stages of alt-fuel transformation, in large part being driven by net-zero regulations and mandates.

"As the availability of regulation-compliant vehicles manifests at dealerships, more data will be available to assess the impact on the commercial vehicle market,” said Aaron Johnson, CEO of Work Truck Solutions. "This data will provide insights into the adoption rates of alternative fuel vehicles (AFVs) and how they are being used by fleets, and we anticipate reporting on this specific vehicle segment in the coming days as the data becomes more significant across the commercial vehicle market."

Data Analysis Takeaways

The data shows the results of used commercial vehicles filling the void of a two-year manufacturing disruption. The available used vehicles today have increased mileage, and with new vehicle inventory levels increasing, the used vehicle segment is taking a hit in all areas.

The trade-off is that there are more new vehicles available for purchase. The YoY cannibalization of the market as the Q4 2022 new vs. used work truck movement ratio was 3:2 (three new vehicles sold for every two used vehicles), compared to the Q4 2023 being 2:1 (two new vehicles moved for every used vehicle).

“The work truck market for new vehicles is trending positively for dealers, with higher prices and expanded inventory levels. Conversely, the used truck segment is showing some signs of challenges with decreased prices and less inventory," Johnson said. "However, regardless of the focus, be it new, used, or a mix of both, it is important for dealers to have solutions that help their customers address work truck, van, and SUV needs for their businesses. With so much continued opportunity on the horizon for commercial vehicle dealers, it will be the solutions they offer their customers that set them apart.”