Brian Kempson, sales director for truck and trailer sales at Asset Alliance Group looks back at the past year in the used truck market.
How has the used truck/trailer market been in 2023?
To put it in perspective you have to look at 2022, which was an extraordinary year for the used truck market. In 2023, there was a serious market realignment, with the shortage of new trucks compounding the challenges.
What have been the challenges in the used truck market this year?
In 2022, operators found it hard to source new trucks due to availability issues and people were cancelling orders. On the back of that, they turned to second-hand options and the used truck and trailer market picked up. We knew there would have to be realignment and forecast accordingly. The market dropped off around March; the shock was how quickly that downturn happened and never picked up. We had a great reliance on the fact that we have an excellent sales team and a loyal customer base. We worked hard on ensuring the added-value was clear through our service, finance and marketing to maintain a steady business flow throughout this period.
What has happened to prices?
Pricing for rigids has held up quite well. For tractor units, prices were over-inflated in 2022 but they have come down to a sensible market level now. The peak in new trailer pricing has dropped sharply which has had an adverse effect, particularly on curtainsiders. Fridge trailers are still maintaining their prices. Amid the market challenges, we launched a very successful online campaign, offering three-year finance deals for ex-Fleet DAF tractor units. What we avoided was a race to the bottom of pricing.
What can we expect from the used market in 2024?
We expect it will be very similar to last year. Two key factors will be a downward move in interest rates and also the new vehicle pricing from the manufacturers. Inflation-busting increases on new vehicles will certainly have a positive impact on used vehicle sales. Looking ahead, at Asset Alliance Group, we have grown our sales in the used market significantly in recent years and we are confident of maintaining this at a very healthy level once again in 2024.
