Residual value and the second buyer
When it comes to maintaining residual value, Anthony Gansle, marketing manager of on-highway truck products for Peterbilt Motors Co., says that “generally, the same new truck specs and features that help fleets recruit and retain drivers will contribute to higher resale values. Pre-owned truck buyers are looking for higher horsepower engines, 13- or 18-speed transmissions and premium interior appointments. Everything that appeals to the average driver by improving their operating efficiencies and making their time on the road more comfortable is in demand and helps maximize resale value.”
Traditionally, trucks spec’d with higher horsepower and 18-speed manual transmissions sell very well, Gansle notes. “The trend toward increased fuel efficiency continues to grow,” he continues. “Pre-owned truck buyers are more aware of the advantages of balancing horsepower and fuel efficiency, recognizing that the highest horsepower available may be the wrong fit from both a business and application perspective. Fleets spec’ing their new trucks with axle ratios geared for fuel efficiency is a trend we’ve seen for at least several years and those trucks are entering the pre-owned market. Used truck buyers looking for greater fuel economy will take this into consideration, along with other fuel efficient specs such as a lower displacement engine and an automated or automatic transmission.
“Components and features that help lower operating costs are always in demand,” Gansle adds. “Particularly as more and more second and third buyers make the transition to what fleets are ordering new such as aerodynamic fairings and automated and automatic transmissions. Despite the lower cost of diesel, fuel is still a top cost so buyers look for ways to offset that through vehicles with higher fuel economy. Of course, condition and curb appeal are essential. Well-maintained vehicles that look as good as they did coming off the assembly line will command top dollar. Features that make a truck stand out—a striking paint color, striping or other exterior design, chrome or bright components, etc.—will sell faster and provide premium value.”
“The first Kenworth T680s built in 2012 are starting to enter the used truck market,” says Kenworth Marketing Director Kurt Swihart. “Resale values are significantly higher than equivalent Kenworth legacy models; so customers are experiencing excellent trade in values for their T680s. We believe that resale values of T680s and T880s will be robust, due to the high-quality cab manufacturing robotic processes, premium interiors, durability and reliability of the trucks.”
Modern day tractors are not designed for easy day cab conversion, Daimler’s Howard notes.
“While Freightliner/SelecTrucks does not have a direct offering to fleets for converting sleepers to day cabs, there are companies that might specialize in making these types of conversions for fleet customers,” he says. “Freightliner would support the modification companies with information on the Cascadia product that they require to successfully complete the modification as well as facilitates relationships between the modification companies and fleets, where needed.”
“Peterbilt’s discrete cab-and-sleeper system is a feature on most of our heavy-duty trucks,” says Peterbilt’s Gansle. “Peterbilt offers this versatility and it is a significant advantage in the pre-owned market. With the exception of our Model 587, which has an integrated cab-and-sleeper, Peterbilt’s Class 8 trucks can easily be converted to day cabs.”
Maximizing resale value
“A couple features and specs to avoid in order to maximize resale value are 6×2 configuration and super single tires,” Daimler’s Howard advises. “For super single tires, you will want to consider converting to dual rear wheels for the secondary market.”
“Performing scheduled preventive maintenance and keeping good records of it will improve resale,” Peterbilt’s Gansle adds. “Fleets with a reputation for operating well-maintained trucks tend to enjoy higher resale values, especially in the wholesale market. Investing a little and replacing some components can help enhance resale value. For instance, pre-owned truck buyers will always appreciate new tires, seats and a mattress.”
“The 12.9-liter MX-13 engine was previously an unknown in the secondary market. Now, customers are adjusting to seeing used Kenworth trucks with the MX-13. Resale values of MX-13 powered Kenworth trucks are being driven higher by its B10 life of 1 million miles, plus low cost of operation, excellent fuel efficiency, high reliability and durability, lightweight design, and quiet operation,” Kenworth’s Swihart said.
“AMTs used to have much lower resale values that manual transmissions. This trend is changing with AMTs much more widely accepted in the secondary markets, thus driving up residual values,” Swihart added. “Cookie-cutter, common spec trucks that are over-supplied in the marketplace generally drag the resale values of that particular model. Premium trucks generally earn higher resale values. So, even though a customer may sometimes pay a little more upfront for a new Kenworth truck, there’s definitely a strong potential to recover this premium on the back-end residual value.”
