April 8, 2014 - Blackbird Asset Services deals with a wide range of industries with our appraisals and auctions. In the past we have worked with heavy equipment, manufacturing, transportation fleets… but a common trend is the appraisal and auctioning of pickup trucks. It has been said that pickup trucks are the workhorses of the U.S. economy (businessinsider.com).
Their uses range from the transportation of materials and equipment to and from jobsites, they can be used as a vehicle for repairing large fleets of other vehicles, and can be the main source of transportation for trade jobs. Business analyst Matthew Boesler stated that the rise in sales of pickup trucks in the U.S. is one of the most important charts of the year. Demand for these vehicles is as pure a measure of actual (rather than reported) small business confidence you are likely to find (Nicholas Colas, Chief Market Strategist at ConvergEx Group). http://www.businessinsider.com/us-shows-strong-demand-for-pickup-trucks-2013-12
Although old trucks can be repaired or overhauled at a fraction of the new vehicle price, the sale of pickup trucks has increased 17% in the past year which is why I found it interesting that Ford Motors is releasing the 2015 F-150 with an aluminum body. Along with the fact that it will have better fuel economy and performance (because it will shave 700 pounds off of the vehicles weight), a major property of aluminum is that is doesn’t rust. Locations with similar weather patterns as Buffalo, NY where Blackbird Asset Services is located will appreciate this in the winter when salt is used on roads to melt snow and ice. David Fiegel, President at Blackbird recently stated “Salt is for our food not our cars”. I would imagine that as these trucks get older and start coming up at auction they will be in much better shape than some that we have been seeing lately. Trucks that resist corrosion should hold higher values, which benefits the owners and auction firms that sell used equipment at auction.