Work Truck Solutions released its Q1 2024 Commercial Vehicle Market Analysis, highlighting numerous key industry trends. The analysis suggests renewed competition between dealers.
On-lot new vehicle inventory per dealer continues an upward trend, registering an increase of 12.7% QoQ and a 93.1% YoY jump. Medium-duty vehicles are key contributors to this growth, constituting 52.4% of the on-lot inventory. Used inventory showed the opposite trend from new vehicles, with an 8.4% decline QoQ and 18.6% YoY.
New commercial EVs, although still comparatively small in overall inventory numbers, also saw a significant increase in on-lot numbers, up 51.5% QoQ and 67% YoY.
The latest data reveals average prices for new commercial vehicles are holding relatively steady, with a modest QoQ increase of 0.1% and a slight increase YoY, up 4.2%.
Average prices of used work trucks and vans reported a decrease of 4.2% QoQ and 2.9% YoY. Price drops reflect the rising median mileage of used work trucks and vans, which has increased 6.9% QoQ and 7.8% YoY.
New light-duty Battery Electric Vehicle pickup prices declined with a 2.5% drop QoQ and 18.1% YoY.
Increases in inventory, record high prices, fewer leads, and high interest rates have precipitated a marked rise in Average Days to Turn (DTT) for new vehicle inventory, with an increase of 12.5% QoQ and a 21.8% YoY spike.
As a whole, new commercial EV sales remained virtually flat QoQ. Sales of used vehicles fell at an accelerated rate, with the average number of work trucks/vans moved per dealer decreasing 10.2% QoQ and 23.2% YoY.
The distribution of body types QoQ is stable, with service bodies still in the top spot. YoY there is a decline in the totality of vans, from empty cargo vans to minivans that were filling in for the decimated van inventory during the Pandemic.
“As we unveil our Q1 2024 data findings, it’s clear there is improved availability of new work trucks, vans and SUVs, which is welcome news to buyers after the last few years of restricted commercial vehicle inventory,” said Aaron Johnson, CEO of Work Truck Solutions. Johnson noted that the swell in new vehicle inventory, coupled with increased Days to Turn (DTT), is sparking renewed competition among commercial vehicle dealers.
Johnson concluded his assessment by saying, “Events such as the Pandemic, high-interest rates, and now the tragic destruction of the Francis Scott Key bridge remind us how important it is to stay vigilant in our customer focus, and also underscore the vital role that timely data, coupled with the right solutions, play in powering the success of commercial vehicle operations across the nation.”
