We have all felt the effects of the lack of new inventory and the increase in class 8 used truck prices; supply and demand reigned supreme. It is safe to say last year was definitely one for the books.
Here Are Some Stats For You
- Retail prices for Class 8 trucks reached the highest level in the previous seven years. In 2021, according to J.D. Power, late model 3 to 5-year-old trucks sold for 40.7% more than in 2020 and 21.4% in 2019.
- Trucks with a warranty in the 3-year-old category brought 96.3% more money year-over-year at auction and 40.7% more at retail.
- The average price for 2018 trucks sold at auction in December was $95,854, which was just over double the auction prices a year ago.
- In December, around 280 used trucks were sold at auction. That is 44% lower than in December 2020 and 74% lower than the record-high 1,054 trucks auctioned off in June 2020.
- In December, the average price sold at auction was $73,305, which was $13,766 lower than November. According to Wards Intelligence, 24,717 new Class 8 trucks were delivered in December, 38% higher than the average in 2021 and the highest since September 2019.
What’s In Store For 2022?
The high freight demand and manufacturing limitation in supply have not allowed carriers to add sufficient capacity. Equipment manufacturers are in the same position. They can’t meet the need for new orders due to labor shortages and the lack of parts available. As economic activity begins to normalize and parts shortages lower, the pressure on used truck pricing will hopefully reduce.
Strong freight rates hold the key, though. While they’re at record-high levels, the used truck market should continue to absorb most of the available inventory, maintaining auction and retail prices at their current levels.