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Six key trends will determine Class 3-7 medium-duty truck lifecycle costs in the 2010 calendar-year. They are diesel prices, acquisition costs, resale, maintenance costs, replacement tire expense, and environmental regulatory requirements. Here is a forecast of what to expect.
Read More →Resale values have significantly declined across the board on all medium-duty trucks, with five-year old medium-duty trucks decreasing, on average, between 18-23 percent in the past 12 months. Trucks older than 10 years have been more difficult to sell due to higher fuel and maintenance costs. The ongoing sluggish business environment is the key reason for the soft resale market. Here's a forecast of what's to come.
Read More →Resale values for mid-size sedans are substantially higher than in 2008, as are prices for light-duty trucks and SUVs. Contributing to this rebound is a decrease in wholesale inventory, low fuel prices, and strong retail used-vehicle sales.
Read More →Lease rate funding instruments have become more and more complex. Most lessors recommend floating rate fleet leases. Is there a place for fixed financing any more?
Read More →Wholesale used-vehicle prices during fourth quarter 2008 were the worst on record. Since then, wholesale prices rose significantly in January through March. The improvement in pricing in 1Q 2009 reflects better-than-expected retail sales of used vehicles. Resale values for mid-size sedans are substantially higher than in 2008, as are prices for light-duty trucks and SUVs. However, consumer confidence and credit availability remain two wildcards to the market's ongoing vitality.
Read More →Massive layoffs are occurring throughout the economy, and many companies find that terminated employees are not returning their assigned company vehicles. Sometimes, the company-provided vehicle is held "hostage" until the employer meets a grievance by the terminated employee. Unfortunately, many HR and legal departments take the "easy way" and are too quick to involve the police to expedite resolution.
Read More →We are currently in the midst of the worst used-vehicle market in the past 25 years. Year-over-year prices declined every month in 2008; however, wholesale prices did improve the first 10 days of January. Despite this, many fleets now find that the depreciation rates established 24-36 months ago are insufficient for today's resale market. In many cases, resale values of fleet vehicles are significantly below the remaining book value. Here's a forecast for what lies ahead in the wholesale market.
Read More →When looking ahead to the next 12 months, I foresee reduced operating costs for fleets offset by increased depreciation expense caused by anemic resale values and decreased incentive monies. Here’s why I believe this will be the case, along with other predictions for 2009.
Read More →PHOENIX – Set for September 10-12 in Phoenix, the 2008 AFLA Conference will offer ideas for strategic fleet management, including discusssions on fuel prices and resale.
Read More →A combination of market forces have converged to create a “perfect storm” to drive down resale values for pickup trucks by 15-25 percent. These convergent forces are higher fuel prices, tighter consumer credit, and a stagnant construction market. As a result, the pool of buyers (hence market demand) for used trucks has contracted, putting downward pressure on resale prices.
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