2022 Year In Review: Another Bumpy Ride for Commercial Truck Prices
In the world of commercial truck prices, 2022 was another year of volatility. Fuel prices spiked and the labor market was as challenging as ever. In an American Transportation Research Institute survey of transportation professionals, respondents ranked the driver shortage and fuel prices as their top concern in 2022. Fuel prices reached a record high in June, with diesel peaking at $5.81.
When you factor in ongoing supply chain snarls and high demand for transportation, it was another tough year for commercial truck buyers.
Despite these challenges, activity on the resale market rebounded from the lows of 2021. In a recent Truck Market Report, we predicted that the number of listings would reach 80,000 in December.
A Year of New Highs
2022 was a year of new highs. On average, commercial truck values, age, and mileage all surpassed the levels we’ve seen over the previous years.
Have Prices Peaked?
Average price peaked in June, when the average value for heavy-duty trucks reached $78,383, and the average price for medium-duty trucks reached $57,940.
Due to increased activity, we noted in the Truck Market Report that pricing increases would likely slow down. However, we wouldn’t know for sure until the end of the year, and into early 2023. Based on the data from Q4, prices did continue to fall. At the end of Q4, prices for heavy-duty trucks reached $70,601, and prices for medium-duty trucks reached $54,135. Both are the lowest rates seen all year.
That being said, values in 2022 were still much higher overall than previous years.
Buyers Chose Older Trucks with Higher Mileage
Even with more inventory on the market, the average age and mileage of available trucks outpaced previous years. According to my colleague Sam Pierce, “It’s possible that, with pricing reaching new highs, people are taking this opportunity to sell older trucks with higher mileage.”
The average age of heavy duty trucks peaked at 10.2 years in Q1. While the average age declined after that, it never went below 8.6 years. Notably, the average mileage of heavy-duty trucks rose in Q4, even as the average age fell.
As the year unfolds, we’ll be watching to see whether pricing continues to decline and how a potential recession impacts activity. We’ll also be tracking how other factors, such as labor and fuel prices, cause the market to shift. Stay tuned to this space.
About Price Digests
Since 1911 Price Digests has served the vehicle data needs of the insurance, finance, government, and dealer markets through its portfolio of VIN decoding, specifications, and market value data solutions for the commercial truck, passenger vehicle, marine, powersport, and recreational vehicle asset classes. Our data + intelligence solutions pave roads to faster and better decisions with perfect-fit data delivery, whether it’s seamlessly integrated APIs, online subscriptions or custom data delivery.