In October, used trucks continued to lose value, but fleet owners might benefit from advantageous deals in the upcoming months due to decreasing interest rates.
Last month saw a drop in used-truck inventory across several categories following a nearly universal decline in September. According to Sandhills Global’s Equipment Lease and Finance Manager, Jim Ryan, used-truck values will better reflect recent market improvements once older-model vehicles are sold off from dealership inventories.
“The older inventory needs to be cleared out,” he mentioned. “I don’t anticipate significant increases in pricing; this inventory must find buyers, either cash or otherwise.”
Ryan noted that a strengthening wholesale market could aid in clearing out older stock and potentially raise prices.
The most significant declines in used-truck values were observed in the auction market during October, as reported in Sandhills Global’s monthly update issued on November 7.
Used Heavy-Duty Trucks
Year over year, inventory fell by 10.4% and month over month by 2.3%, with sleeper trucks experiencing a 31.2% decrease. Asking prices dropped 15.3% year over year and 1.1% month over month, while auction values decreased 18.7% year over year and 1% month over month.
Used Semitrailers
Inventory increased by 8.5% year over year but fell by 5.8% month over month in October. The flatbed trailer category exhibited the most substantial year-over-year growth at 28.5%. Asking and auction values fell by 18.9% and 18.1% year over year, respectively, and by 3.5% and 2.3% month over month.
Used Medium-Duty Trucks
Inventory for medium-duty trucks rose by 5.5% year over year and 1.4% month over month. Asking values fell by 13.9% year over year and by 0.3% month over month, while auction values decreased by 22.3% year over year but increased by 0.7% month over month.
A Potential Opportunity
Despite the declining values highlighting challenges in the used-truck market, fleet owners now have a chance to take advantage of lower pricing and falling interest rates, according to Matt Manero, president of Commercial Fleet Financing.
“There will be a six-month window during which interest rates will decrease while truck prices remain low. This offers an exceptional opportunity for those who act. If you wait for further rate reductions, truck prices may rise, eroding your purchasing power.”
— Matt Manero, President, Commercial Fleet Financing
Currently, the average price for a used heavy-duty truck stands at approximately $47,000, while a used medium-duty truck averages just over $45,000.
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