Why the used trucks pricing bubble finally burst

After months of leaks, the wind has finally come out of the used truck market as increased production of new trucks allows fleets to trade in their old scrap metal.

Business prices are about 25% higher than their pre-pandemic peak, said J.D. According to Power Valuation Services. At the height of the price bubble, used trucks are selling for up to 149% more than before COVID hit in March 2020.

Inflation increased in December. Many sellers and sellers who want to adjust their inventory for taxes at the end of the year contribute to this. But so did December’s top new car deliveries, according to Ward’s Intelligence.

New truck deliveries pushed used truck prices lower

New truck sales rose 18% to 29,172 from 24,716 a year ago, beating the 23,581 sold in August, which was the highest of the year. They are also the highest since data collection began in 1998. Full-year sales rose 14.6% to 254,206 from 221,889 in 2021.

Improving supply chains means more new truck production

Supply chain optimization helps OEMs produce more trucks. This means more business and greater availability, even in used truck shipping.

“One way to define ‘overweight’ is if truck prices recently fell below a long-term trend,” Visser said. “Trucks that are getting repaired are about 20% more expensive than their pre-pandemic peak, and trucks with less than 400,000 miles have seen a reduction in value.

“If the freight environment holds up and OEM’s manage the build rate, we could avoid a used truck oversupply.”

Owners and fleets who purchase used trucks during their lifetime use more expensive equipment because freight costs are lower. The spot market price covers about 15 percent of the volume changed, bringing back the world’s highest number of revisions.

As the price of used trucks during the shortage, many truckers make the authorities to pursue the number of vandals have returned to the back side, leaving the business of trucking and it is working with carriers.

Recent model used trucks fare better in price

Long-term use farms continue to perform better than older equipment with higher longevity, Power said in its January newsletter.

“It is safe to say trucks with average mileage lost at least 5% of value in December from November,” Guidelines reported.

The month-over-month rate has gone from 5.2% to 23.9% for the five model years – 2017-2021 – consecutively. In December, 3- to 6-bedroom homes sold for an average of 13.8% less than in November and 35.5% less than in December 2021.

Over the year, these trucks depreciated by an average of 4.8% per month. A 3-year-old truck that sold for more than $160,000 at auction in January fetched less than $100,000 in December.

Late-model trucks sold in calendar year 2022 averaged 25.5% more money than 2021, although monthly comparisons turned negative in the third quarter.

Retail used truck prices lower than historic norms

On the retail front, prices moved slightly higher in December but remained below historical levels. The description of the truck, what to do, and the availability of similar items in all types related to the question and the price understood. Slowing freight markets, higher interest rates and declining equity prices combined to keep retail prices flat compared to November.

The average sleeper tractor sold in December was 73 months old, traveled 439,511 miles and brought in $89,723. It’s the same year as the same truck offered in November, except it’s 6.4% lower and sold for $87 less. In December 2021, the average sleeper of one year had 6.1% more than his maree $675 less.

The second volume of sellers in 8% sellers increased by 20% in November, but compared to December 2021, as analytical review. This represents a growing growth more than three times.

Steve Tam, vice president of ACT Research said, “Despite today’s global forecast, there is still strong demand for all vintage trucks.

ACT Research and J.D. Power agree that used trucks will be in greater supply in coming months.

“Negative equity has been a challenging factor in recent months, and that situation will not improve in the near future,” Power said. “This is what the back end of a pricing bubble looks like.”