Used-truck prices ‘hit bottom’ as inventory dwindles

Used-truck prices may have finally bottomed out as heavy-duty inventory declined in December amid loosened lending standards and broader economic improvements. 

While used trucks have steadily depreciated since the freight recession began in 2022, they will likely remain stable or increase on a month-over-month basis moving forward as dealers clear out older inventory and obtain a healthier mix of new and used vehicles, Sandhills Global Equipment Lease and Finance Manager Jim Ryan told Equipment Finance News. 

“We’ve really kind of hit the bottom in the trucking market,” he said. “There’s some late-model stuff that’s hitting the retail, wholesale and even the auction market that is moving at a good number in comparison to the past couple of years.” 

Used heavy-duty and semitrailer inventory declined for a fourth straight month in December, according to Sandhills Global’s monthly indices. But medium-duty inventory rose for a third consecutive month, partly due to an excess of used box trucks sitting on the market, Ryan said. 

Used heavy-duty trucks 

• Inventory fell 7.2% year over year and 0.9% MoM in December; 
• Sleepers saw the largest inventory drop, falling 29.8% YoY. The MoM number was not included;  
• Asking values decreased 10.6% YoY and 0.5% MoM; and 
• Auction values dropped 18.5% YoY and 2.6% MoM. 

Used semitrailers 

• Inventory fell 0.4% YoY and 5.4% MoM; 
• Reefers drove the decrease, dropping 18.8% YoY. The MoM change was not included; 
• Asking values declined 16.5% YoY and 0.8% MoM; and 
• Auction values fell 16% YoY and 1.6% MoM. 

Used medium-duty trucks 

• Inventory rose 17.9% YoY and 3.9% MoM; 
• Asking values decreased 12.1% YoY and 1.6% MoM; and 
• Auction values dropped 23.6% YoY and 2.8% MoM. 

Truck financing climate heating up? 

Truck financing activity is poised to pick up this year in light of falling interest rates and increased confidence among fleet owners, Ryan said.  

“I think you’re going to see some banks and [financial institutions] open up a little bit more this year and maybe start getting back into transportation financing, cherry-picking some deals and moving toward that way a little bit,” he said.  

While lenders are expected to grow and diversify their portfolios in 2025, being “selective on the quality of the collateral” is imperative, Chris Grivas, president of Chadds Ford, Pa.-based CAG Truck Capital, told EFN. 

“I think everyone is going to adjust based on their style of business,” he said. “The people that are making loans of $1 million and up are probably going to make different adjustments than somebody that’s making loans of $50,000 or $60,000. For us, we’re going to lean more toward the higher-end trucks.” 

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.