Used Truck Prices are Crashing After 2021 Boom


Staff member
Oct 30, 2022
The used truck market, which experienced unprecedented highs this past year, is finally beginning to normalize. Used truck prices reversed year-over-year gains in November for the first time since 2020 and Chris Visser, J.D. Power Valuation Services commercial vehicles senior analyst and product manager, believes that this is due to the cooling of the freight environment and increased supply of new trucks.

Initially, when price levels rose at an unprecedented rate, those who invested in used trucks hoping to make a killing on the spot market were happy because they felt they had made a good investment decision. However, now that prices are beginning to normalize, many of these drivers are feeling the pinch as their vehicles become increasingly difficult to offload at a profit or even break even. As Visser noted, there will be “many truck owners underwater on their loans in 2023” and unfortunately “many will face repossession” if something isn’t done soon.

This could have serious repercussions for businesses across the country as repossessed trucks could lead to an increase in costs for companies that rely on truck transportation services due to less competition in the space. Additionally, it could also lead to a decrease in safety as some operators may be forced into making risky decisions in order to make ends meet. Therefore, it is important that business owners keep an eye on used truck pricing trends over the coming months so they can make sure they are not adversely affected by any sudden drops or spikes.

The Impact on Truck Owners

For many truck owners, this decrease in used truck prices could mean they are now underwater on their loans. With less money coming into their business from hauling freight and lower profits due to higher vehicle costs, many may find themselves unable to keep up with their loan payments and potentially facing repossession of their vehicles if they cannot refinance or renegotiate terms with lenders. This could be devastating not just for individual operators but also for small fleets who use multiple trucks as part of their business model.

It is clear that used truck prices have begun normalizing after experiencing a boom throughout 2021 and while this may seem like good news initially; it could end up causing problems down the line if not managed properly. Business owners should remain vigilant and stay up-to-date with pricing trends so they can make sure their operations are not adversely affected by any sudden drops or spikes in used truck prices over the next few months. With careful monitoring and management strategies put into place now, businesses can ensure that their operations remain successful in 2023 despite possible repossessions of trucks due to current market conditions.
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