April was a great month for those in the market to buy a used big rig to increase their fleet, as, for the most part, the auction market eased up during that month. J.D. Valuation Services has the numbers.
April 2022 Auction Averages
- Model year 2020: $153,580; a $5,920 (3.7%) decrease from March.
- 2019: $112,785; $4,962 (4.2%) decrease.
- 2018: $98,188; $2,879 (3%) increase from March.
- 2017: $59,302; $14,682 (19.8%) lower.
Of the model years tracked, the only one that increased was 2018. Even then, it increased less than the magnitude of the smallest decrease, which was 2020 models.
While we are hesitant to say that this is the end of the global supply chain shortages that are impacting the entire world, even beyond the trucking industry, it is a good sign of things slowly returning to normal. As bigger fleets get their orders for new trucks fulfilled, they no longer have need for their older models, selling them off to recoup their initial purchase costs.
In general, smaller prospective buyers benefit. While true that older trucks run up more costs in maintenance, the fact that depreciation is heavily skewed towards the first miles on a truck allows the buyer to save money and reap some of the benefits of newer truck models without having to fork over a large sum of money.
Interesting to note is the plunge that 2017 models experienced. In a single month, 2017 models have lost the price tag premium accumulated over roughly the past twelve months.
With prices showing their first sign of definitive weakness in a long time, prospective truck buyers are wondering if now is the time to pull the trigger and purchase a used truck. We are of the opinion, “yes.” Shortages in other aspects of American life signify that we are not out of the global supply shortages yet, so it is very possible that now is the best time to buy for the foreseeable future before prices increase again.
Whenever you are ready to buy, TopMark Funding can help by leveraging our numerous lenders to get you the best funding deal possible for your particular credit scenario. Read on below for more information!
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