During February, the markets for the four equipment types showed age, price and volume changes as we continue into 2017. The Caterpillar 303.5E CR only dropped in average age by 0.03% after the large percentage increase in January as the model year popularity on the used market has not changed within the past six months despite a calendar year change. The other model with a small change in average age was the Deere 640FD up 1.35% over January with the average model year at 2013 throughout the past 13 months. The Mitsubishi Fuso FE160 dropped in average age by the largest percentage in February, down 7.45% from January. The average model year truck on the resale market in January was 2012, but in February shifted to the 2013 model. The only model among these four with the older years as the most popular on the market is the Sky Trak 10054. Given the typical lifespan of a lift truck, it comes as no surprise that the most popular model years for this equipment include 2008 and 2007.
Volume within the market for each of the models grew in February with the exception of the Deere 640FD, which was significantly lower in volume than January. This past month was by far the Deere’s lowest volume month within the past 13. The Deere dropped more than 70% in activity both month over month and year over year. The Mitsubishi Fuso showed the largest month over month increase at 95.5% over January given the notably low volume at the start of the year. Activity should continue to pick up for these trucks into the second and third quarters as it typically does for the truck market. The Sky Trak 10054 had the least amount of variability in volume of the top models with a 14.5% increase over January and a 13.5% drop from February 2016. With the exception of May, the Sky Trak showed consistent market presence throughout the past thirteen months with less variation in monthly volume compared to the other models, which is an attribute of the lift truck market given previous top model trends.
The month over month FMV changes were the smallest for the Caterpillar 303.5E CR of the top four models. The largest percentage change was a 2.08% increase in January. This is an indicator of the stability within the construction market within the past year for the excavators. The equipment with the largest month over month percentage changes was the Sky Trak 10054, which was interesting considering it is the highest priced model of the top four meaning the percentage changes are even higher dollar changes than the remaining models. If prices follow a similar trend as last year, expect the lift truck FMV to increase even more in the second quarter.