Used Truck Auction Prices Tumble in June 2022
It is fair to say that the used truck market has become a buyer’s market, as, according to J.D. Valuation Services, average prices across the board decreased double-digit points in June.
June 2022 Details
- Model year 2021: $153,889. As this is the first month J.D. Valuation Services has tracked for model year 2021, there is no gain or decline to be measured.
- 2020: $111,001, a $25,731 (18.8%) decrease from May.
- 2019: $80,727, $14,926 (15.6%) drop from the month prior.
- 2018: $75,641, $12,811 fewer than May and a decrease of 14.5%.
- 2017: $50,107, which is $9,747 (16.3%) cheaper than in May.
Chris Visser of J.D. Valuation Services states that this recent drop has led to “year-over-year” parity. Indeed, prices are lower than they were during the first report of the year in February 2022 (though still 19.4% higher on average than they were in June 2021).
The big question is why the bubble is popping. Visser has a hypothesis that megafleets are offloading their older models to move onto higher model years, creating an increase in the supply side of the equation. The weaker demand for trucks causing prices to drop is obvious: fleets do not want to pay six figures for a truck that is approaching two years old, when it should have depreciated over time rather than increased in price tag. Being able to buy a truck, put a few hundred thousand miles on it, and then sell it for more than the original purchase price is fantastic for the seller, but not so lucrative for the buyer. As such, recent auction rates have left some would-be purchasers out in the cold.
But no longer! As prices drop, more demand for trucks will arrive, and prices should begin to stabilize. Nobody can tell when that stabilization will occur, but it is fairly safe to say that the tables have turned in the used truck auction market.
Of course, if you wish to seize this opportunity to get yourself some reliable cabs, perhaps decreasing your fleet’s average age by a few months, TopMark Funding is here to help. Read on below for how we can help you get more Class 8 trucks.
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