Used Truck Market: Why Supply & Pricing are So Strong Now

The used truck market is currently thriving as sleeper inventory has fallen to levels not seen since the pandemic. Daimler Trucks Remarketing President Chris Backeberg attributes this to carriers retaining trucks for longer periods during an extended freight downturn and the industry's failure to overproduce during the post-COVID recovery.

This has prevented historic oversupply issues that typically impact used truck values. While inventory did build in 2023 and 2024, it has cleared quickly. Backeberg notes that pre-COVID, Daimler had nearly 10,000 units in inventory priced under $10,000, but day cab pricing has strengthened significantly. The customer base has shifted, with small fleets operating fewer than 50 trucks now making up a majority of buyers.

Residuals have also risen, with Daimler adjusting its models to avoid a repeat of past losses. Maintaining aging trucks becomes costlier around the 4 to 4.5-year mark, prompting fleets to consider replacements. Despite a recent rise in new truck orders, Backeberg cautions that this will not lead to a significant increase in used truck supply in the near term, especially while prices remain high.