The values of used heavy-duty and medium-duty trucks continued to decline in June, as inventory levels remained high amidst concerns over tariffs and pressures on freight rates.
Asking and auction prices for used trucks have dropped, with buyers and sellers waiting for a price adjustment that could alleviate the impacts of tariffs and fluctuating spot rates affecting the transportation industry, Jim Ryan, Equipment Lease and Finance Manager at Sandhills Global, shared with Equipment Finance News.
“Historically, high inventory levels would typically trigger a boost in prices, but that hasn’t happened yet,” Ryan remarked. “Tariffs and spot rates are stalling the market, although there is some optimism, particularly for heavy-duty trucks.”
On the heavy-duty front, late-model Class 8 lease returns with under 500,000 miles are beginning to attract better pricing, leading to increased transactions in this sector, according to Ryan. Conversely, medium-duty truck values have seen a decline for the 10th consecutive month.
Challenges in Truck Financing
Despite some segments showing strength, truck financing remains weak as lenders are cautious about reentering the market due to ongoing concerns regarding tariffs and freight rates, Ryan noted.
“Many lenders have not yet returned to the financing market, making it especially challenging for smaller players compared to larger fleets,” he explained. “It will be interesting to observe how larger fleets handle rising costs in the new truck market.”
Despite the high overall dollar value of delinquent accounts, the number of delinquencies has decreased, largely due to over-the-road (OTR) truck assets, according to Paul Fogle, Managing Director at Quality Equipment Finance in Carmel, Ind.
Recent Trends in Used Truck Inventory
In the heavy-duty truck category, inventory dropped by 20.2% year-over-year and by 0.3% month-over-month; asking prices declined by 1.5% YoY and 0.1% MoM; while auction values decreased by 1.7% YoY and 4% MoM.
Medium-Duty Truck Insights
For medium-duty trucks, inventory rose 17.4% year-over-year but fell 6% from the previous month; asking values declined by 2.4% YoY and 0.6% MoM; auction values fell by 3.9% YoY and 3.7% MoM.
Semitrailer Market Trends
In the semitrailer sector, inventory decreased by 9.6% year-over-year and 0.1% month-over-month; asking values slid 0.7% YoY but rose 0.2% MoM; auction values went up 1.3% YoY, though down by 2.2% MoM.
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