Used Trucks Became Cheaper in July 2022
Another month, another round of used Class 8 auction rates from our friends at J.D. Valuation Services. In this case, the downward trend mostly continues as four out of five model years saw prices decline in varying levels of intensity.
July 2022 Numbers
- Model year 2021: $145,278. A decrease of $8,611 (5.6%) from June.
- 2020: $116,840, a $5,839 (5.3%) increase from June.
- 2019: $80,347, a mere $380 (0.5%) decrease from the month prior.
- 2018: $61,323. A decrease from June of $14,318 (18.9%) and the largest change of the group, dollar and percentage-wise.
- 2017: $42,778: $7,329 (14.6%) lower than June.
The numbers confirm what industry analysts have been saying for a while now: the demand for used trucks is starting to outpace supply.
For what reason? Global supply chain shortages are still happening, with trucking companies struggling to manufacture enough new Class 8 vehicles to meet demand. It appears the reason prices are decreasing is the demand side of the equation: fleets are unhappy with current prices and are often kicked out of the market for being unable to afford the trucks. This was a boon to sellers, but now the situation has flipped on its head: it is a buyer’s market as sellers are trying to sell their stock before the prices decrease any further.
Conclusion
This creates a conundrum for prospective truck buyers. As with when prices were increasing, where the question was whether or not to buy before prices become higher, it is now time to ask if it is worth holding out another month or two for a better deal.
The simple answer is that nobody knows. If a fleet waits too long to buy, it may find itself in a similar position to what we saw earlier this year when prices were skyrocketing. Nobody can tell the future, and attempting to perfect timing in the market is ill-advised. A solidly good deal is better than the chance at a great deal that may turn sour.
If you agree with our sentiment and are ready to buy a new or used truck or trailer, you can count on TopMark Funding to get you the best options for your credit scenario! Read on below for more information.
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