Used-truck auction highlights late-model pricing gaps
Used heavy-duty inventory fell 20% YoY in January
The used-truck market may be stabilizing, but huge pricing gaps between late-model units are creating uncertainty for dealers that take the auction route to liquidate.
- Several 2024 Freightliner Cascadia sleeper trucks sold for more than $140,000 during a Feb. 19 online auction conducted by financial services firm Tiger Group, according to online auction platform EquipmentFacts. The auction was part of a bankruptcy sale that included about 70 commercial vehicles, mostly ranging from 2021 to 2024 model years.
- Three 2024 International sleeper trucks with less than 5,000 miles sold for nearly $120,000, and 2024 Kenworth and Peterbilt models with more than 130,000 miles sold for a little over $100,000.
- For heavy-duty trucks made in 2021, 2022 and 2023 model years, closing bids ranged from about $22,000 to $85,000, with one outlier of $100,000 for a 2022 Peterbilt. Model-year trucks from 2012 to 2019 mostly sold between $9,000 and $20,000.
Winning bidders can apply for financing through CurrencyFinance, the default financing option on EquipmentFacts’ platform that connects buyers with prospective lenders.
Remaining warranties for newer vehicles contribute to “immense pricing gaps” between late-model trucks, Jarrett Harris, director of research at heavy-equipment research firm IronAdvisor Insights, told Equipment Finance News.
“If you have something that’s newer and maybe has some warranty left in it, then it’s going to go much, much higher, because a brand-new truck is going to be $170,000.”
— Jarrett Harris, director of research, IronAdvisor Insights
While the auction market can be effective for purging excess inventory, truck dealers are becoming less likely to risk the uncertainty associated with auctions as retail and wholesale markets improve, Harris said.
Used-truck market builds momentum
Despite challenges tied to pricing discrepancies, the used-truck market continued to build momentum in January as auction and asking values rose month over month in most categories while inventory fell, according to Sandhills Global’s Feb. 7 report on used-equipment trends.
Used heavy-duty trucks
- Inventory decreased 19.6% year over year and 10.2% MoM in January;
- Asking values fell 7.9% YoY, but rose 0.3% MoM; and
- Auction values dropped 7% YoY, but jumped 2% MoM.
Used semitrailers
- Inventory declined 14.5% YoY and 11.1% MoM;
- Asking values fell 12.2% YoY, but rose 2.2% MoM; and
- Auction values decreased 8.6% YoY, but increased 6.1% MoM.
Used medium-duty trucks
- Inventory was up 18.3% YoY, but down 1.4% MoM;
- Asking values dropped 5.1% YoY and 2.2% MoM; and
- Auction values declined 6.6% YoY and 0.8% MoM.
Higher prices yield favorable resales
Many dealers have taken losses on lease returns and trade-ins in recent years due to steady depreciation of used trucks post-pandemic. Now, with prices bottoming out, dealers are seeing greater value in resale opportunities, Sandhills Global Equipment Lease and Finance Manager Jim Ryan told EFN.
“Some of your late-model lease return units are bringing fairly good value in comparison to what they have in the past,” he said. “And I think that is a thing you can hang your hat on, and something that will continue as you see values increasing a little bit month over month.”
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