Auction Rates Mostly Slide in May 2022

We all knew this day would eventually come, it was just a matter of “when”, not “if”. Well, the time has finally arrived, and auction rates for used big rigs are starting to make trucks more affordable for the average fleet. J.D. Valuation Services has the numbers!

May 2022 Numbers

According to J.D. Valuation Services, no 2021 trucks were auctioned off in May.

• Model Year 2020: $136,732; $16,848 (11%) lower than in April.
• 2019: $95,653; $17,132 (15.2%) lower.
• 2018: $88,452; a $9,736 (9.9%) decrease.
• 2017: $59,854; a $552 (0.9%) increase.

This is a lot of numbers to digest at once, but three-quarters of the data points to not only used heavy-duty truck prices dropping, but dropping fairly significantly.

Perhaps the easiest explanation is to handwave it all off as depreciation, but older vehicles depreciate slower than newer models, so there is still at least a 4.2% differential to explain for the 2019 models. Chris Visser of J.D. Valuation Services calls the current trend a “market correction”, a claim we are inclined to agree with.

If you have been following the auction prices like we have, you may remember that there was a period in time where you could purchase a slightly-used vehicle, drive it for 100,000 miles in a year, and still sell it for more than what you started with. This was unprecedented, at least in modern history, so it stands to reason that a correction was in order. The real question was when that correction was going to happen, which appears to be now.

Conclusion

The question that should be on your mind right now is whether or not the decreasing prices will continue or whether they will stabilize or even turn around. We cannot say for sure, as the demand for trucks is still pretty strong due to all-time high employment within the industry.

If you make the decision to purchase a used big rig, however, we at TopMark Funding are more than willing to help leverage our network of buyers to get you the best possible terms for your credit scenario. Read on below for more information.

ABOUT TOPMARK FUNDING

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We have financing options for trailers, semi-trucks, commercial trucks, and small businesses. We have great rates, low down payments, and flexible monthly payments regardless of credit history.

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Fill out the contact form or give us a call at (866) 627-6644. One of our truck financing specialists will contact you as soon as possible to go over your truck lease needs and learn more about you and your business financing goals.