A year ago, prices for all models of used semi-trucks were exorbitant.
The same supply chain disruption impacting farm machinery manufacturers was plaguing truck makers, cutting off the supply of new trucks.
Buyers who couldn’t get new trucks went after late-model vehicles, according to The Machinery Insider.
As a result, the average price for a Class 8 sleeper truck reached $90,393 in December 2021, according to J.D. Power.
That was $41,748 more than 2020, despite trucks being six months older.
This past winter, Class 8 semi-truck prices dropped 25 percent, according to Acceptance and Commitment Therapy (ACT) Research. “That was a bit steeper than expected,” observed Steve Tam of ACT Research.
J.D. Power’s Commercial Truck Guidelines reported buyers are rapidly purchasing low-hour premium trucks.
But when it comes to two- to six-year-old sleeper trucks in J.D. Power’s benchmark model, average pricing in late winter was as follows:
· 2022 models: $162,668 (a 5 percent climb in price compared to January).
· 2021 models: $121,816 (a 7 percent drop since January).
· 2020 models: $94,863 (a 9.6 percent drop since January).
· 2019 models: $82,459 (a 1 percent drop since January).
· 2018 models: $63,747 (a 1 percent drop since January).
Compared to a year earlier, February 2022, late-model semi-truckss lost a quarter of their market value.
Mitch Helman of Sandhills Global said, “As truck and semitrailer values shift downward, sellers should closely monitor value trends. That’s to keep prices competitive and to stay ahead of market changes.”
Further evidence that used Class 8 truck prices are soft can be found in the Sandhills Equipment Value Index. It reports heavy-duty truck inventory increased by just over 30 percent early in 2023.
That is evidence that semi-truck values will likely continue to soften into the summer and fall. More new trucks are being made, which leads to increased trade-ins.
Greatly influencing this trend is the general economy. Continued inflation or a slight recession will slow the demand for trucking, thereby reducing demand for late-model Class 8 vehicles.
The million-dollar question is whether to buy now or wait until late summer and see what develops.
That decision depends on needs, the age of the current fleet, and how much crop will be hauled to town this summer.
Chances are good that semi-truck prices will continue to slip into harvest, analysts said.
Looking beyond the odometer and features when pricing used trucks, is always worth the effort.
“A common mistake farmers make is not knowing everything there is to know about a particular item,” said Bill Nelson of U.S. Auctioneers. “It starts by doing business with a reputable firm that will tell you the bad along with the good.”
Nelson offers the following guidelines to researching a truck’s background and condition.
Confirm the truck’s mileage. Calculate what major repairs will have to be made if the truck has racked up a lot of miles.
Get into a truck’s background. This includes identifying its current owner and asking the dealer for contact information.
Hit the internet. Research reviews of the truck in general and the specific model’s engine and transmission history.
Inspect the truck. Do it in person or hire a mechanic for the job. Start the engine and warm it up, being sure to listen outside the truck with the hood raised for engine noises. Then get in and take it for a ride. Listen carefully for engine or brake sounds that might indicate an unseen problem.
Freightliner still leads the Class 8 semi-truck market. Included are Freightliner, 37.9 percent; Peterbilt, 15.3 percent; Kenworth, 14.4 percent; International, 12.6 percent; Volvo, 10.6 percent; Mack, 6.7 percent; and Western Star, 2.5 percent.
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