Used CV valuation and resale

How valuers price a truck

Start from the current price of the same model new, then deduct for age (about 12% a year for the first five years), condition (tyres, body, engine), odometer, and region. A truck registered in a state with strict age limits on goods vehicles sells for less.

What moves resale prices

• Freight rates. When freight rates fall on the main corridors, operators sell trucks and buyers wait. Prices can drop 10 to 15% in a quarter.
• Diesel prices move freight rates with a lag of about two months.
• New emission norms cut the value of older trucks sharply in the months before they apply.

When we sell

Repossessed trucks are sold through our auction partner after the notice period in KB-024. Expect 60 to 70% of the valuer's price at sanction for a truck under five years old in good condition, much less for older trucks or a weak market. The difference between the sale price and the outstanding is often larger than the arrears we were chasing, which is why KB-006 makes repossession the last step.