The commercial vehicle market has experienced significant shifts, impacting how fleet managers approach vehicle acquisition and management. Work Truck Solutions' 2023 Annual Commercial Vehicle Market Analysis provides critical insights into these trends, including price changes, inventory levels, and the emerging influence of alternative fuel vehicles.
1. New Commercial Vehicle Pricing and Inventory Trends: In 2023, the average price of new commercial vehicles rose by 6.5% year-over-year (YoY), reflecting an upward trend in market pricing. Interestingly, on-lot inventory for work trucks showed a substantial increase, growing by 87.4% YoY. This growth suggests a rebound in vehicle availability, contrasting with the limited inventory scenarios faced in previous years.
2. Used Commercial Vehicle Market Dynamics: The used vehicle segment saw a median mileage increase of 10.1% YoY while prices decreased slightly by 1.8%. The decline in on-lot inventory and movement numbers for used work trucks and vans highlights a shift in market preference towards newer vehicles.
3. Shift Towards Alternative Fuel Vehicles: With the commercial vehicle market in the early stages of an alternative fuel transformation, driven by net-zero regulations and mandates, there's an increasing focus on regulation-compliant vehicles. As more data becomes available, fleet managers will gain clearer insights into the adoption rates and usage patterns of alternative fuel vehicles (AFVs).
4. Market Analysis Takeaways: The increase in mileage of available used vehicles and rising inventory levels of new vehicles indicate a market response to previous manufacturing disruptions. The market is experiencing a shift, with new vehicles increasingly favored over used ones. This trend suggests a potential cannibalization effect in the market dynamics.
5. Opportunities and Challenges for Dealers: The changing dynamics present both opportunities and challenges for commercial vehicle dealers. The positive trend for new vehicle sales is balanced by challenges in the used vehicle segment. Dealers are encouraged to offer comprehensive solutions that address the diverse needs of their customers, whether focusing on new, used, or a mix of both.
In this evolving commercial vehicle market, fleet managers need to stay informed and adapt their strategies accordingly. Alliance Leasing is here to guide you through these market changes, offering tailored solutions for your fleet's unique needs. Whether you're considering new, used, or alternative fuel vehicles, our expertise can help you make informed decisions that benefit your business. Contact Alliance Leasing to navigate market trends and prepare your fleet for the future.
