Those who were in the market for commercial vehicles (or any vehicle, for that matter) in 2021 saw the rise in price at the dealership. One might have heard about the shortage of new vehicles, and perhaps industry peers were seen at dealerships shopping for a new commercial vehicle, as well. Those that couldn’t find a new vehicle might have decided to opt for a used vehicle, only to find the price for a used vehicle to be comparable to a brand new one.
According to data, those who found themselves in the scenarios listed weren’t in the minority. They weren’t isolated incidents, and they weren’t just on occasion.
NUMBERS TALK
Work Truck Solutions, a technology-based platform for the commercial vehicle industry, released its 2021 analysis of the commercial vehicle market and forecast for 2022. The data was collected on a nationwide scale. Work Truck Solutions found that, “Although 2021’s commercial vehicle (CV) inventory mirrored the automotive industry vehicle production slowdown, overall commercial vehicle sales for the year were up more than 11% over 2020.”
The data collected also indicated an increasing demand for certain types of upfitted vehicles. Work Truck Solutions found that the demand for service bodies (used by the largest number of vocations) remained high, while demand for dry freight and refrigerated vehicles saw gains of 275% and 200%. And as if the demand versus inventory for pickups wasn’t at an imbalance already, the shortage of cargo vans pushed van buyers to seek out other final-mile solutions in pickup trucks, flatbeds, and passenger wagons. To put the demand for delivery vehicles into perspective, Work Truck Solutions’ data showed an increase of a whopping 1,100% for the online search of delivery vehicles ranging from first mile to middle mile to final mile.
Data also found that in 2021, list prices for new work trucks increased more than 13%, and new van prices rose more than 18%. In 2021, the price of used vans averaged $40,000 compared to $33,000 in 2020, and the price of used work trucks increased an average of over 40%.
2022 PREDICTIONS
Work Truck Solutions CEO Kathryn Schifferle predicts the demand for vans will continue to grow for 2022 along with the increase in refrigerated vans and box trucks. Additionally, the industry saw an increase in 2021 for less-conventional cases such as “secure transport,” used in cannabis delivery with an increase in demand of 283%. Schifferle expects this market to continue growing in 2022.
Schifferle and the team at Work Truck Solutions has also observed a rush to provide mobile maintenance services, which requires specialized vehicles for both fleet and home maintenance needs. As a result, the team and Schifferle expect this to be one of the fastest-growing segments of the commercial vehicle industry in 2022.
Finally, the team at Work Truck Solutions and Schifferle also expect to see commercial vehicle prices (both used and new) to maintain higher averages through 2022. With the rise in demand of services, commercial vehicle values will hold because businesses cannot delay their commercial vehicle purchases.
ONLINE SEARCH
Although finding the perfect used work truck has become a tough task due to supply and demand, some companies are exploring ways to ensure customers find exactly what they need through online shops and databases. As online vehicle-selling platforms such as Carvana and Vroom have taken the consumer market by storm, Work Truck Solutions got on board in November 2019 with its online marketplace, Comvoy.com.
Work Truck Solutions designed Comvoy specifically for the work truck market. The platform allows customers to search vehicles by make and model, but also by body style, body manufacturer, add-ons, and more.
General Motors also recently announced its online vehicle-selling platform, CarBravo. Modern WorkTruck Solutions reached out to Work Truck Solutions for a comment on the news and what this means for work truck fleet owners in the market for a vehicle.
“GM is smart; the theme in today’s environment should be that it’s so important to give buyers as many channels as possible to find their vehicle,” Schifferle says. “This is even more true for commercial buyers for whom locating the right commercial vehicle is critical to keeping their business operating—and it’s especially challenging for them with their unique use cases to find the right upfitted vehicle in the current environment.”
SMART SHOPPING
Having as many shopping options as possible is a plus in this market, especially when supply is low. But an overabundance of data doesn’t make the search any easier.
“Yes, for commercial buyers it’s not just having as many channels as possible to find their (commercial vehicle), but finding as much absolutely accurate configuration information on each of the vehicles that is critical—otherwise the time spent searching and grinding and asking and clarifying and guessing is untenable,” Schifferle says.
If Work Truck Solutions’ predictions for the coming year are correct, demand for work trucks will continue to climb. Those in the market for a used work truck should take every opportunity to shorten their search and purchase a vehicle as soon as the right one becomes available. Work Truck Solutions and Comvoy could greatly simplify this process.
“Work Truck Solutions has the requisite searchable, accurate, configuration data and currently power four unique types of channels that help buyers: dealership sites, upfitter locators, OEM branded sites, and our national marketplace—Comvoy,” Schifferle says. “Take a look at any of those sites powered by Work Truck Solutions and you immediately see the power of accurate configuration information and understand why it is so important to know exactly what each vehicle is, where it is, and how it can be accessible. That’s what we do.”
FOR MORE INFORMATION
Work Truck Solutions provides marketing and lead generation tools designed to help commercial vehicle buyers. The company was founded to help commercial vehicle buyers find the trucks they need to run their business. Find out more about Work Truck Solutions and Comvoy, visit www.worktrucksolutions.com.
