We don’t see much press about the extended-hood segment these days. New aerodynamic models are regularly introduced to great fanfare, but it is rare to see a new traditionally-styled model enter the market. Owning and operating one’s own truck has become increasingly difficult in the past two decades due to fuel prices, higher insurance costs, the increased price of new trucks, tougher competition for freight, shifting credit standards, and other factors. Demographics have also shifted to a point where the pool of traditional owner-operators are aging out of the business to an increasing degree. 

So where does this leave the long & tall market for used trucks? Production has of course declined since the 80’s, which means there are fewer trucks available to the secondary market. However, there is still demand for these trucks from selected operators. Traditional long-haul owner-operators still demand these trucks, and many fleets purchase limited numbers as reward trucks for their best drivers. As such, pricing of used trucks is alive and well, with the average 3-year-old extended-hood model bringing almost $12,000 (or 13%) more than the average aerodynamic model in 2014 when adjusted for spec. Not adjusting for spec, that difference increases to nearly $20,000 (or 24%). Further, that value difference holds up over time, with the average 6-year-old long-hood truck maintaining the 13% premium. See graph below for detail.

Going forward, demand for long & tall trucks may gradually shrink over time in step with the number of traditional long-haul owner-operators. However, manufacturers have done a good job “right-sizing” production to meet demand on the new side. Owner-operators looking for a late-model used rig, and heavy-haul or construction entities looking for a slightly older piece of equipment, will ensure a continued market for these trucks. As such, we do not see the premium for extended-hood equipment shrinking to a notable extent in upcoming quarters.