Equipment Finance News
  • News
  • Event
  • Data
  • Features
  • Lender Directory
  • PodcastNew
  • WebinarsNew
    • Webinar Library
Log In
No Result
View All Result
  • Dealers
  • Lenders
  • Transportation
  • Agriculture
  • Construction
  • Materials Handling
  • Rentals
  • Compliance
  • Data Analysis
Equipment Finance News
  • News
  • Event
  • Data
  • Features
  • Lender Directory
  • PodcastNew
  • WebinarsNew
    • Webinar Library
No Result
View All Result
Equipment Finance News
No Result
View All Result

Truck prices find stability as expectations for 2025 grow

New truck prices up 39% MoM

Johnnie Martinez IIbyJohnnie Martinez II
February 3, 2025
in Transportation
Reading Time: 7 mins read
0
Share on FacebookShare on LinkedIn

Stable pricing in the trucking industry at the end of last year opens the door for a better 2025 after a disappointing 2024. 

The industry “may be slow moving, but we’ve kind of hit that bottom tier to where we’re not going to see much more of a substantial dip,” Jim Ryan, equipment lease and finance manager at Sandhills Global, told Equipment Finance News. “There’s some opportunity for some positive trends, possibly this year, on the truck side.” 

Constricted truck financing limited growth in 2024, as the industry failed to gain traction with regional banks and mid-sized lenders, but deals could return in 2025, Ryan said. 

“They’re going to be cherry-picking some deals and moving toward that way a little bit,” he said of lenders. 

While credit approvals improved 0.3 percentage points in the month of December, landing at 74.3%, approvals remained down 0.7 percentage points compared with December 2023, according to the Equipment Leasing and Finance Association (ELFA)’s CapEx Finance Index. 

Meanwhile, charge-offs declined 5 basis points to 0.52, although charge-offs still increased by 8 basis points compared with December 2023, according to ELFA. 

Still, banks are at least indicating some optimism in the equipment finance sector as a whole headed into 2025 following a record 36.2% spike in bank-related equipment finance activity in December, according to ELFA. The growth in bank-owned equipment finance activity facilitated an 8.1% increase month over month and a 17% increase year over year. 

Tariff concerns 

The trucking industry continues to recover from economic turmoil caused by low freight volumes, depressed rates and rising operational costs. Now, tariffs represent a potential additional challenge for the trucking and transportation industry, American Trucking Association‘s President and Chief Executive Chris Spear said in a statement on Feb. 1. 

“We have concern that tariffs could decrease freight volumes and increase costs for motor carriers at a time when the industry is just beginning to recover,” he said. “A 25% tariff levied on Mexico could see the price of a new tractor increase by as much as $35,000. That is cost-prohibitive for many small carriers, and for larger fleets, it would add tens of millions of dollars in annual operating costs.” 

With the trucking industry moving 85% of goods crossing the southern border and 67% of goods crossing the northern border, the long-term impacts of tariffs could affect hundreds of thousands of trucking jobs in the U.S., as well as increased consumer costs, Spear said. 

“We firmly support policies that will secure our borders and protect legitimate trade, but we also recognize the unintended consequences that substantial tariffs could have over the long-term, including higher consumer costs on the wide range of goods that cross our borders by truck, including food, automobiles, televisions, computers, furniture and other key manufacturing inputs.” 

Truck OEMs positive on price despite declining profits 

Truck manufacturer Paccar, for one, continues to see rising prices despite a decline in profits during the fourth quarter and full-year 2024, CEO Preston Feight said during the company’s Jan. 28 earnings call.   

Paccar Financial Services earned $104 million in Q4 pretax income, down 8% YoY, and earned $435.6 million in 2024 pretax income, down 19.4% YoY, while parent company Paccar’s Q4 net income totaled $872 million, down 38.5% YoY, and 2024 full-year net income finished at $4.2 billion, down 9.5% YoY. 

“As the market moves around and people are experiencing the great performance of the Kenworth, Peterbilt and DAF trucks, we expect that we will see strengthening price position for ourselves as the course of the year progresses,” he said. “We think that trend carries on even beyond 2025.” 

Fellow manufacturer Volvo also saw net sales decline 6.4% during Q4 and 4.6% during full-year 2024, while operating income and operating margin for its truck division also fell due to lower volumes and flat prices, Mats Backman, chief financial officer of Volvo Group, said during the company’s Jan. 29 earnings call. 

Class 8 sales jump amid stable prices 

Same-dealer sales for used Class 8 trucks rose 16% month over month and 4% year over year in December, according to a Jan. 28 report by ACT Research. The increase followed a 1% MoM decrease and a 24% YoY increase in November.  

Used Cl8 Retail Summary Heat Map December 2024 Final
(Courtesy/ACT Research)

The increase in used Class 8 truck sales in December also signals potential pricing growth in 2025, Steve Tam, vice president at ACT Research, said in the release. 

“Prices are expected to remain stable at or around the current level before transitioning to YoY growth in early 2025,” he said.  

“Same-dealer used Class 8 retail truck sales rose to their highest monthly tally for 2024 in December. December typically represents the fifth-best sales month of the year, running less than 1% below average.” 

Pricing outlook 

Higher spot rates should also bolster the used-truck market’s recovery as fleet owners see more opportunities to increase profits, Dan McDonough, president and chief executive at Charlotte, N.C.-based equipment financier Commercial Credit Group, told EFN.  

“In the last 90 days, used-truck prices have clearly found their footing, but they’re still too low,” he said. “A four-year truck today is selling for the same price as a four-year-old truck in 2019, and a lot of people view those as the same assets because you really got to look at used-truck prices as a function of what it costs to replace it.”  

Still, there was a price spike to end January, according to EFN’s dataset on the Average Pricing of Commercial Trucks and Trailers by Condition. The spike for new and used commercial truck prices could be the start of a strong pricing environment for dealers, lenders and OEMs. 


(Chart/Equipment Finance News)
As of Jan. 29, average new commercial truck prices landed at $159,868, up 38.9% month over month, according to the dataset. Used-truck prices rose 53.3% MoM to $69,181.  

Meanwhile, EFN’s Index of Commercial Trucks and Trailers Available for Sale and Lease reached 70 on Jan. 29, up 75% month over month.  

Index of Commercial Trucks and Trailers Available for Sale and Lease
(Courtesy/EFN)

Looking ahead 

Paccar expects the next major driver for the transportation industry to be the 2027 emissions standards, McDonough said. 

“Interest rates aren’t going to move it at all, but I do think that the truck market always overcorrects, and this one was a hell of an overcorrection,” he said. “The biggest driver is going to be in about a year from now, and the 2027 emissions standards are now starting to get attention. So, near term, what’s going to drive used equipment prices is going to be a function of freight demand.” 

Due to the California Air Resources Board and Environmental Protection Agency’s respective emissions mandates, 2027 forecasts to have the largest truck prebuy ever, Brian Antonellis, senior vice president of fleet operations at Fleet Advantage, told EFN. 

While the approach to emissions standards and climate change is likely to change under President Donald Trump, OEMs such as Volvo remain committed to electric vehicles and meeting net-zero emissions goals. As a result, there’s still likely to remain an EV push ahead of 2027. 

The third annual Equipment Finance Connect at the JW Marriott Nashville in Nashville, Tenn., on May 14-15, 2025, is the only event that brings together equipment dealers and lenders to share insights, attend discussions on crucial industry topics and network with peers. Learn more about the event and register here.  

Tags: ELFAequipment financeFeaturesinflationtransportationtrucking
Previous Post

Looming tariffs present risks for the equipment sector

Next Post

US manufacturing activity expands for first time since 2022

Related Posts

Trailers in a lot during a Ritchie Bros heavy equipment auction in Bolton, Ontario, Canada, on Tuesday, May 9, 2023. Ritchie Bros Auctioneers Inc., a Canadian firm that sells heavy equipment at auctions around North America, struck an agreement in November to buy IAA, which sells damaged and written-off vehicles.
Transportation

Bankruptcy rears head in commercial trucking

June 12, 2025
Satoshi Ogiso, chief executive officer of Hino Motors Ltd., from left, Koji Sato, president of Toyota Motor Corp., Martin Daum, chief executive officer of Daimler Trucks AG, and Karl Deppen, chief executive officer of Mitsubishi Fuso Truck & Bus Corp., attend a news conference in Tokyo, Japan, on Tuesday, May 30, 2023. Toyota Motor and Daimler Truck have agreed to merge their truck manufacturing subsidiaries, Hino Motors and Mitsubishi Fuso Truck & Bus, to boost margins and develop new technologies such as alternative fuels and autonomous driving.
Transportation

Fuso-Hino merger agreement finalized, financing arrangements unclear

June 12, 2025
Tractor trailers parked at a truck depot along the US-Mexico border in Ciudad Juarez, Chihuahua state, Mexico, on Tuesday, Feb. 4, 2025. US President Donald Trump agreed to delay 25% tariffs against Mexico for one month after a conversation with his counterpart Claudia Sheinbaum on Monday, a dramatic turnabout with the neighboring nations on the brink of a trade war.
Transportation

New truck data reflects industrywide downturn

June 11, 2025
Next Post
Employees with Bicycle Corporation Of America, a division of Kent International, Inc. work an assembly line at the company's manufacturing warehouse in Manning, South Carolina, U.S., on Thursday, May 13, 2021.

US manufacturing activity expands for first time since 2022

Proud Member Of

Check Out Our Industry Event

Stay Informed With Our 8 Newsletters

The Dig Podcast

Dealer Operations

Listen: How Anderson Equipment is managing and protecting data

Financial stability brightens Anderson Equipment’s 90th anniversary

June 13, 2025
Tech investment set to grow in 2024

IronConnect launches DealerFlow platform to maximize returns

June 12, 2025
John Deere signage at a United Ag and Turf dealership in Colchester, Connecticut, US, on Friday, Nov. 3, 2023. Deere & Co. is expected to release earnings figures on November 22.

Deere, Toro opportunistic with capital during market slowdown

June 10, 2025
  • About Us
  • Advertise
  • Contact Us
  • Privacy Terms
  • ADA Compliance

 Manage Cookie Consent

Connect with us

© 2025 Royal MediaRoyal Media

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • News
    • All News
    • Dealers
    • Lenders
    • Transportation
    • Agriculture
    • Construction
    • Material Handling
    • Rentals
    • Compliance
    • Data Analysis
  • Event
  • Data
  • Features
  • Lender Directory
  • Podcast
  • Webinars
    • Webinar Library

© 2025 Royal MediaRoyal Media

THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
Save & Accept