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Used truck auction prices dropping quickly

Earlier this year we saw the rise of used truck prices and it looks like they are starting to drop at a quick rate. Many owner operators are now stuck with overpriced equipment. According to Freight Waves, “auction prices in May for model year 2020 used trucks fell 11% from April. Prices for model year 2019 trucks fell 15.9% month over month and 2018 models dropped 9.9%”.

While retail prices in dealerships are still at record levels, as these rates drop, so will truck demand.

“If your customers are mainly small fleets and owner operators who operate in the spot market, you’re hearing the sky is falling… if your customers are mainly larger fleets who operate in the contract market, you’re hearing conditions are still strong”. With conditions in the trucking industry always changing it is important to keep up with news and industry updates.