Is This the Steady Ground the Used Truck Market Has Been Looking For?
We’ve all felt it, the weight of wondering, “Are things finally stabilizing in the used truck market?” The consecutive years of unpredictability had most of us at the edge of our seats. But it seems we might just be in for a smoother ride.
Price Digests’ most recent 2023 Truck Market report paints a hopeful picture: the used medium and heavy-duty truck market appears to be finding its feet again. But what does this really mean for stakeholders? Has the ebb and flow finally balanced out? The evidence points to a hearty yes, at least in certain respects. In this blog, we take a deep dive into what our new report says about Medium Duty trucks.
Medium Duty trucks, the often-unspoken heroes of the trucking world, are showing signs of a welcomed return to normalcy. While prices still lean on the higher side, they’ve come down a noticeable 10% from their peak in the second quarter of 2022. Remember those inventory hiccups that were like those uncomfortable bumps on a long highway? Well, those are showing signs of settling down. And if the trends persist, we might just see more favorable pricing as inventory numbers continue to rise.
Yet, it’s not just about the price. It’s about the quality and the age of the trucks on the market. In an almost nostalgic reflection, the average age of these medium-duty trucks has reverted to the good old days of 2019, resting at a comfortable 7.57, just a smidgen away from the 7.69 of Q2 2019. And mileage? Just like the age, it’s showing a comforting return to pre-pandemic trends.
Yellow Freight’s Bankruptcy brought a redistribution of trucking routes, which undoubtedly has ripple effects. An oversupply of drivers is changing the employment dynamic in the industry. Fuel prices? On the climb again, making every trip to the pump a little more painful. And let’s not forget the looming shadow of a potential recession. All these factors created uncertainty in the the market outlook for this year, that was, unsurprisingly, filled with trepidation. Freight rates have dwindled, and the overall commercial trucking vibe feels a bit subdued.
But maybe that’s not entirely a gloomy picture. This cooling period might be the breather manufacturers and sellers have been gasping for. It’s a chance to revisit and resolve lingering supply chain issues. And for buyers? Perhaps an opportunity to stretch their budgets a tad further.
Now, while the trucks might be rolling steadily, ensuring they’re adequately insured remains a bit of a rocky road. Rising settlements, and the unpredictable nature of inflation, make commercial truck insurance a challenging terrain. And in such an environment, mitigating premium leakages becomes paramount.
Enter Price Digests’ TruckBody IQ®. Think of it as the compass you’ve been looking for. With lightning-fast access to comprehensive commercial truck values, underwriters can craft more precise quotes without breaking a sweat.
In conclusion, while the horizon seems clearer, the journey for the used truck market is still unfolding. But with tools like Price Digests 2023 Truck Market report and our TruckBody IQ®, stakeholders can steer their ship with a little more confidence. After all, isn’t the journey more rewarding when traveled with the right companions?