Used Trucks 2023 review: Paul Young, PACCAR Financial Europe

Commercialmotor.com catches up with Paul Young, Regional Asset Manager UK & Ireland Export – PACCAR Financial Europe to find out how the used truck market reacted in 2023.

How has the used truck market been in 2023?

Ultimately, it has been subdued with a noticeable decline in construction-related equipment sales. Prices have fallen on older four-year+ examples back to pre-pandemic levels.

What have been the challenges in the used truck market this year?

With enquiry levels well down, and a significant increase in fleet tractor returns, prices have come under extreme pressure with only the cleanest low-mileage examples performing at satisfactory levels.

Have there been any welcome/unwelcome surprises?

As the year end approached, the first sign of export markets returning has provided some welcome, positive news. This really is a reflection of domestic pricing levels which have now fallen back into the export budget.

What has happened to prices?

A general view would be that prices have dropped significantly across the board. Only the latest New Generation DAF models, and under two years old, have continued at strong levels. The used truck market has been artificially buoyant due to long lead times for new, so, the fact that the ‘new’ market is returning to normal may explain the weakening of used values. The fleet tractor market has suffered most, as new vehicle supply has eased resulting in many older high-mileage units being returned after extended use. As previously mentioned, we are back at pre-pandemic pricing levels.

What can we expect from the used market in 2024?

There are likely to be a number of factors to look out for, including a General Election, interest rate levels, the overall economy and inflation rates. With most dealers well stocked as a result of when prices were higher, they will be looking to trade their way out. With record numbers of hauliers collapsing in the last 12-months, I expect the domestic market for used trucks to continue to shrink, not helped by some of the major fleets expanding and only buying new. I think there will be an upturn in H2 with a hope that the early signs of the export buyer returning, a continuation of the recent drop in inflation, and interest rates fuelling buyer confidence. With a general election looming, many operators may choose to wait and see the outcome before deciding to invest in fleet updates.