Used-truck inventories continue to rise in May as lenders remain cautious in financing them.
Heavy-duty truck inventories hovered around April levels, while medium-duty trucks climbed, Sandhills Global Equipment Lease and Finance Manager Jim Ryan told Equipment Finance News.
“You’re still seeing an abundance of inventory, still seeing some dips in pricing,” he said. “We’re in the same boat we were last month, we just need to get that used inventory flushed out of the market.”
Banks’ hesitancy to help finance transportation equipment continues to contribute to rising inventory levels, he said.
“A lot of guys are having a hard time getting financing on used equipment depending on the year and age,”—Jim Ryan, Manager, Sandhills Global Equipment Lease and Finance
Inventory stayed up in May, with the auction and asking values continuing to drop across all transportation categories surveyed by Sandhills.
Used heavy-duty trucks
- Inventories rose 6.3% year over year in May and 2.2% month over month.
- Asking values dropped 17.3% YoY and 2.3% from April.
- Auction values dropped 18.7% YoY and 1.1% from April.
Used semitrailers
- Used inventory — which includes dry vans, referees, flatbeds and drop decks — climbed 29.1% YoY and 0.9% MoM.
- Asking values dropped 20.3% YoY and 1.6% MoM.
- Auction values dropped 21.9% YoY and 4% MoM.
Used medium-duty trucks
- Used inventory — which includes box, flatbed and cab and chassis trucks — climbed 32.6% YoY and 1.7% MoM.
- Asking values dropped 14.8% YoY and 0.3% MoM.
- Auction values declined 15.7% YoY and 1.5% MoM.
Trucks that don’t require commercial driver’s licenses, like flatbeds and box trucks, have flooded the market in the past few months, Ryan said.
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