"Completely nuts," J.D. Power Senior Analyst and Product Manager, Commercial Vehicles Chris Visser said of how he would sum up the last five months for used trucks. "Prices for sleeper tractors are completely through the roof."
Through the first five months of 2021, four to six year-old trucks at auction are 80% ahead of the same period last year, by far the highest pricing in the six years J.D. Power has been tracking it. Tyler Townsend, Ritchie Bros. director of strategic accounts, noted that for the prior three months ending in May, used truck prices are up 23% year-over-year at auction, and with so much volatility surrounding pricing and availability of build materials, this could be the new normal for a while.
"The used truck market has been challenged with inventory based on trade cycles and normal course of business. Several fleets that would normally retire their older units are now having to extend the lives, and extend leases, to keep trucks on the road in anticipation of that [new truck delivery date] and delays," he said. "Of the used trucks that are currently coming into the secondary market, we're truly seeing great demand. They're bringing a premium price in the open market, and prices are strengthening for used trucks and tractors."
Visser expects the supply of off-lease trucks to gradually ramp up later this year, but doesn’t see much impact to used truck pricing into the summer.
