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It should be no surprise to anyone who works with us that truck demand is through the roof this year. So much so that trucking companies who normally purchase new are attempting to find solace in the used truck market. While used trucks are cheaper, their prices are on the upswing.
J.D. Power, a marketing research and analytics company, reports that most trucks with model years 2 and older are selling for more than they did a month ago. Average prices for sleeper tractors in May 2021 were:
- Model Year 2020: $123,844; $11,944 (9.6 percent) higher than April
- Model Year 2019: $99,602; $7,023 (7.1 percent) higher than April
- Model Year 2018: $75,682; $3,276 (4.3 percent) higher than April
- Model Year 2017: $59,611; $5,352 (9.0 percent) higher than April
- Model Year 2016: $47,846; $2,094 (4.4 percent) higher than April
The numbers are even more astounding when compared to May 2020, during what we call the “dog days” of the pandemic. Were a risk-taking trucking company to purchase a used truck then, they could get one that was newer, with fewer miles, and for less money.
The rising prices on trucks and other motor vehicles are so large, it has had a noticeable strain on the Consumer Price Index, even with a decrease of prices on some other large-ticket items such as prescription drugs and medical services.
Don Ake of FTR has predicted for months that a production shortage is imminent, and while that has not been entirely the case quite just yet, the fact that demand is currently higher than supply is undeniable. If Ake’s prediction comes true and a lack of rubber and computer chips impacts the trucking industry, this gap will only widen.
With new trucks and used trucks flying off the shelves and predictions of a dearth of trucks to come due to supply shortages, now may not be the perfect time to buy, but it may be the best time to buy for the rest of the year. If you need financing for such a truck, Topmark Funding can certainly help. Read below for more information.
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ABOUT TOPMARK FUNDING
TopMark Funding is a top-rated semi-truck financing and trailer financing company located in Roseville, CA. We specialize in commercial trucking and heavy equipment. Our mission is to become your long-term financial partner by helping you grow your trucking business and fleet.
We’re not here for the short-term, we’re on the long-haul with you!
Learn more about Trailer Financing.
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.