‘Once-in-a-lifetime pricing boom’ in used trucks reverses course

Used truck prices reversed year-over-year gains in November for the first time since 2020, suggesting a normalized environment is returning after a year of unprecedented high prices.

“Following the once-in-a-lifetime pricing boom in 2021, the used-truck market in 2022 started coming back down to Earth as the freight environment cooled and the supply of new trucks increased incrementally,” said Chris Visser, J.D. Power Valuation Services commercial vehicles senior analyst and product manager.

For drivers who paid top dollar on a used tractor hoping to make a killing in an elevated spot market, well, that dream is over.

“It’s safe to say there will be many truck owners underwater on their loans in 2023. Many will face repossession,” Visser told FreightWaves.

Federal Motor Carrier Safety Administration data shows the number of monthly net operating authority revocations in 2021 surpassed the most recent pre-pandemic peak in 2021. The current figure is roughly double 2019. But that doesn’t mean each revocation resulted in a truck hitting the used market.