J.D. Power Valuation Services reports that the average retail price for a used Class 8 sleeper, the heavy-duty tractor used for long-haul routes, has plunged about 22% to about $49,000 in March, according to the Wall Street Journal.
WSJ reports that now, trucking companies are trying to trade in vehicles following one of the steepest plunges in used-truck prices since the recession. Some carriers are “upside down” on trucks in their fleets, meaning they owe more on a vehicle than it is worth.
Large long-haul trucking companies typically run a truck for three to five years, then trade it before the warranty expires. Repair and maintenance costs tend to skyrocket after about 500,000 miles. Large carriers such as Swift Transportation Co. SWFT, Knight Transportation Inc. KNX and Werner Enterprises Inc. WERN have said the soft market for used trucks has put a dent in their businesses, even though cargo volumes have begun to recover. Last year, some fleets wrote down the value of trucks that are many companies’ main assets, according to the Wall Street Journal.
Get a free quote now for a cash flow deal to take advantage of the fire sale on used big rigs.
You can read the the Wall Street Journal article by clicking here.