
Multiple factors increased fleet order-to-delivery times, such as quality holds, massive recalls, the Cash for Clunkers program, GM & Chrysler’s emergence from bankruptcy, and the decision to build to demand, not to capacity.
Multiple factors increased fleet order-to-delivery times, such as quality holds, massive recalls, the Cash for Clunkers program, GM & Chrysler’s emergence from bankruptcy, and the decision to build to demand, not to capacity.
Turnover in diesel fleets happens slowly. The average service life for a medium-duty truck is 5-10 years, while a short-haul owner-operator heavy-duty truck typically has the lifespan of 18-20 years. Despite the 2007 and 2010 diesel emission standards, tens of thousands of older, dirtier trucks will remain on the road into the next decade. Is there a way to accelerate the turnover of pre-2007 diesel trucks? One way is a Cash for Clunkers program specifically for work trucks.
Dealer inventories at all-time lows make this a good time for small fleets to plan ahead and factory order.
In his monthly used vehicle market conditions commentary, Tom Kontos of Adesa reports that wholesale used vehicle prices in September averaged $9,742 -- a 2.1 percent decrease from August but a 2.1 percent increase from September 2008.
Bob Barton, president of the American Car Rental Association, provides a post-mortem analysis of “Cash for Clunkers” on the Auto Focus blog.
Bob Barton, the president of the American Car Rental Association (ACRA) asks why vehicles built overseas qualify for the Cash for Clunkers program.
In his July commentary, Tom Kontos of Adesa says that firming used vehicle prices resulting from low trade-in supply and strong used car demand are conditions that have been in place for the entire year.
"The effect of a supply reduction of this magnitude could have an immense impact on these [used car] values in the short-term, exacerbating the already-limited supply at auction."
Some vehicles that previously qualified for the program no longer do, while some that didn't qualify before do now.
Hyundai buyers will receive the full rebate allocated under the CARS program when an eligible trade-in is exchanged for a qualifying Hyundai model.
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