Auction Rates for Used Trucks on the Decline

The COVID-19 pandemic will go down in history for numerous reasons; one of the biggest will be the effect it had on the used trucking industry. The fine folks over at J.D. Valuation services have been tracking the average auction sale value over time, and the effects of the COVID-19 pandemic can be seen in full.

Details

Below is a graph showing the prices of trucks on a monthly basis for a little over five years. Keep in mind that a model of truck changes in color on the graph each year, eventually aging out after becoming six years old.

The graph shows a harrowing statistic: in 2022, a truck from 2019 often sold for more than its initial sale price. When considering how powerful depreciation normally is, this is a staggering event we likely will never see again for the rest of our lives. It is possible, but if it were to happen again, it means we are experiencing another crazy scenario such as nuclear fallout or a zombie uprising.

July 2024 Numbers

Since the graph’s ending in March 2024, numbers have continued to decrease. Here are what they are at now:

• Model year 2021: $43,669; a $3,128 (6.7%) decrease from May.
• 2020: $37,962; $2,716 (7.7%) higher than May.
• 2019: $26,578; depreciating $2,120 (6.4%) lower compared to May.
• 2018: $16,755; $12,328 (42.4%) lower than May.

The last time we reported on the numbers for auction rates, the 2021 model year averaged at $63,375, so it has dropped approximately 25%.

Conclusion

With general used asset prices now on the downswing and the lowest they have been since 2020, it is the best time since the turn of the decade to get into a used truck or trailer and expand your fleet. TopMark Funding can help by doing a soft credit pull and finding you our best funding solution for your particular scenario without harming your credit score. Read on below for more information as to what we can do for you.

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