As we wrote in last month’s Guidelines, “now is the time to make hay while the sun shines.” Fleets and owner-operators are expanding and trading up to newer trucks, thanks to improved business confidence and the need to move more freight. There are more late-model, lower-mileage trucks available to sell thanks to the return to shorter trade cycles. So we have increased demand meeting increased supply. 

Pricing has not decreased notably since the supply shift began in the first quarter of this year, so dealers should be selling higher numbers of trucks at historically high prices. Over the long term, we should see trucks depreciate at a slower rate than historically typical, thanks to the proportionally higher price of new trucks. The used truck business looks like a pretty good place to be for the foreseeable future. See graphs below for detail.