Strong demand for late-model trucks boosted the used heavy-duty market in February, but repossessions spelled trouble for the medium-duty sector as inventory spiked.
Late-model trucks with low mileage are at a premium due to their relative affordability compared to new trucks, driving up lease demand and providing a “shot in the arm” to the heavy-duty market, Sandhills Global Equipment Lease and Finance Manager Jim Ryan told Equipment Finance News.
“It’s not like new equipment dropped in price,” he said. “If anything, they’re raised in price, and it’s kind of putting a premium value on a lot of these lower-miles [trucks]. Obviously, being a lease return, you’re lease-maintained as far as maintenance goes. So, it’s brought a premium value on a lot of those for fleet companies… rather than going out and paying double or triple the cost of buying new.”
Dealers are also having more success moving older Class 8 inventory to buyers from all over the world, Ryan said.
Used inventory rose month over month in medium-duty and semitrailer categories last month after they fell across the board in January, but the industry remains on the right track as prices continue to stabilize, according to Sandhills Global’s March 5 report.
Used heavy-duty trucks
- Inventory decreased 21.8% year over year and 2.3% MoM;
- Asking values dropped 6.5% YoY and 0.3% MoM; and
- Auction values dropped 6.2% YoY and 0.9% MoM.
Used semitrailers
- Inventory fell 9.2% YoY, but rose 3.5% MoM;
- Asking values declined 8.8% YoY, but rose 1.7% MoM; and
- Auction values fell 5.4% YoY, but increased 0.9% MoM.
Used medium-duty trucks
- Inventory jumped 20.3% YoY and 5.8% MoM;
- Asking values fell 1.6% YoY, but rose 1.7% MoM; and
- Auction values were down 2.2% YoY, but up 1.8% MoM.
Increased medium-duty inventory was partly attributed to an uptick in repossessions, particularly in the box trucks category, Ryan said. And unlike the heavy-duty sector, high prices of new vehicles are hindering this market, with fleet owners holding onto vehicles for as long as possible instead of upgrading, which could strain the resale market, he said.
“It’s hard to get value out of that, because some of these box trucks are pushing 300,000, 400,000 miles,” he said. “So, it’s something to keep an eye on.”
Financing opportunities for older trucks
While obtaining financing for older trucks can be tough, some lenders capitalize on aging vehicles with plenty of life left in their tanks, Chris Grivas, president of Chadds Ford, Pa.-based CAG Truck Capital, told EFN.
“It’s sort of like having a ’69 Chevy Chevelle that you take care of and you drive it every day. You do have a lot of guys who will do that to their truck. They maintain it immaculately and can run that truck for 30 years. Those are the ones that we will finance.”
— Chris Grivas, president, CAG Truck Capital
However, it’s the lender’s responsibility to ensure that the truck has been well maintained, Grivas said.
“We have our own diesel technicians on payroll,” he said. “So they’re constantly training our people what to look for when we have questions or doubts.”
Early Bird pricing for the third annual Equipment Finance Connect ends March 28. Taking place at the JW Marriott Nashville on May 14-15, 2025, this is the only event for both equipment dealers and finance providers. Learn more and register here.
