Used truck prices have continued to fall in recent times. The trend has become quite clear. This has been the case across several years and on different models. Not so long ago, the supply chain had become a big problem. New truck manufacturers have gained the upper hand over the supply chain. So truckers who may have gotten their trucks at high prices may be well regretting at the moment.
Buyer’s Remorse
Truckers loved the $4-a-mile loads arrangement. It is all history at the moment. According to Freight Waves, drivers who had reactivated their DOT authorities are now pulling out. Some have gone to join for-hire carriers. Other drivers have decided to seek their income outside trucking. It will take some time for equipment prices to return to the levels they were before the pandemic.
The new truck backlog is still there. However, deliveries have also hit historic numbers. So there is hope, after all. They have hit over 20,000 per month ever since March. This shows that supply is showing signs of improvement. Such good numbers of deliveries show that more trade is expected. At the same time, it also shows that depreciation will increase even more. New Class 8 sales in October improved by 34.5% compared to a year earlier.
Used Truck Prices Are Still Falling
Used truck prices are still falling despite a few anomalies from month to month. Month-to-month volumes of class 8 trucks on retail dropped. OEMs have gotten a way of dealing with the supply chain challenges they have faced. Improvements in the output can be easily noticed as a result. As the movement of new trucks spikes, the prices of used ones drop. The two are directly dependent, apart from used trucks with low mileage.
Prices of used trucks will keep falling even into 2023. Depreciation speed was up in October for trucks with average mileage on them. The industry is getting the better of the supply chain at the moment. Demand and supply were far apart, initially leading to the struggles. However, as things keep getting better, there is hope. It means more new trucks are available, making the used ones even more affordable.
What to expect in 2024
The trends observed in the previous year are expected to persist, with supply chain improvements likely to continue driving down the prices of used trucks. While some positive signs, such as historic numbers of new truck deliveries, offer hope for the industry, the extent of this decline in used truck prices and its broader implications remain uncertain. As the market continues to adjust to evolving dynamics, truckers and industry stakeholders will need to closely mto monitor developments and adapt their strategies accordingly closelyonitor developto monitor developments and adapt their strategies accordingly closely monitorments and adapt their strategies accordingly.
