Used Truck Prices Soar vs Delays On New Trucks

Used Truck Prices Soar

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Across the last 21 months, we have seen many struggles across industries. However, the trucking industry continues to tackle problem after problem, having to learn to adapt quickly. Starting with Brexit causing disruption across the supply chain. Compared to 2019 between January and March imports and exports fell by 24.2% and 11.7% in turn. Followed by the coronavirus pandemic, imposing national lockdowns and travel restrictions on businesses. With various shutdowns and suspensions on manufacturing, it has caused a ripple effect that is now being seen.

 

Part Shortages

As working from home was enforced, individuals surged to buy suitable connectivity devices. Purchases of smartphones and laptops, whilst manufacturing and production plants were closed. Therefore, slowing the production of vehicles, from class 1 passenger cars to class 8 heavy-duty trucks. This has now led to a shortage in semiconductor chips which are located in both technology and late model cars and trucks.

 

Furthermore, one of the biggest challenges now facing trucking companies is delays. Production lines are experiencing unprecedented delays, with new stock due to worldwide parts shortage. New vehicles are awaiting new components, whilst used trucks are holding out for service bays. With high demand but availability low, suppliers are having to source parts and diversify their supplier resources. Additionally, to combat the wait for customers, many people are extending their leases.

 

Demand For Euro 6 HGV Stock

Concerns are growing with regards to environmental pollution across the plant. In 1993 the European emission standards were introduced, these were to help towards the measuring and control of the environmental impact. It aims to reduce pollutants such as nitrogen oxide (NOx), carbon monoxide (CO), hydrocarbons (THC and NMHC), and particulate matter (PM). Research has shown an increase of 42% of demand for Euro 6 HGV trucks.

 

The government are actively striving to reduce emissions. From new regulations for combustion engines and introducing more clean air and ULEZs (Ultra Low Emissions Zones). With increases in costs for traveling in certain areas alongside increased tax, demand for Euro 6 HGV vehicles has increased. Reports have found there is a 59% increase in comparison to pre-pandemic.

 

Increased Costs

As demand has increased so has the cost of vehicles new and used. It has been reported there is a record high (58%) in the average selling price of used HGV vehicles. With the average selling price of a used HGV reaching £13,226 throughout summer. In general, used trucks are becoming almost equally as expensive as new.

 

Record High Demand Despite Covid

Van and truck sales have seen a record high in demand. This is thought to be due to changes in buying behaviours, resulting in more online sales and home delivery requirements. Reports have shown a 76% (191, 513) increase in sales compared to the first half of 2020. Due to such high demands mixed with shortages many dealers have closed their books for 2022. This enables them to meet customer expectations and in general catch up with the increased pressures.