Market in Transition as Late-Model Heavy-Duty Sleeper Trucks Retain Value While Older Model Values Decline

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May 19, 2022, 13:05 ET

LINCOLN, Neb., May 19, 2022 /PRNewswire/ -- The latest Sandhills Global Market Report shows that as more late-model (0- to 5-year age group) sleeper trucks have entered the market, sleeper trucks in the 7-year or older age group have dropped in value more steeply than newer models. Year-over-year auction values for sleeper trucks manufactured since 2015 decreased just 10 percentage points since the beginning of the year, while YOY auction values for sleeper trucks aged 7 years and older have posted 40- to 60-percentage-point decreases over the same time frame. With a lack of new production to replace late-model sleeper trucks, asking values for used sleeper trucks made after 2017 remain positive, posting an 8-percentage-point improvement since January.

The Sandhills EVI indicates heavy-duty sleeper auction values increased 62.3% YOY, a 7-percentage point decrease from the start of the year when auction values were up 69% YOY.
As shown in the graph, asking values for late-model sleeper trucks have displayed less decline than older models, likely due to the lack of new production available to replace the commercial trucks. — The Sandhills EVI indicates heavy-duty sleeper auction values increased 62.3% YOY, a 7-percentage point decrease from the start of the year when auction values were up 69% YOY. As shown in the graph, asking values for late-model sleeper trucks have displayed less decline than older models, likely due to the lack of new production available to replace the commercial trucks.

Asking values have historically begun their decline when inventory levels turn; April marked the fifth straight month-over-month increase in heavy-duty sleeper truck inventory. April 2022 inventory levels were down 14.8% YOY, a dramatic improvement from March when inventory levels were down 33.9.% YOY.
Heavy-duty sleeper trucks in the 7-year-plus age group historically represent 27% of the total sleeper truck inventory; as of April, that age group accounts for 36% of the total inventory. — Asking values have historically begun their decline when inventory levels turn; April marked the fifth straight month-over-month increase in heavy-duty sleeper truck inventory. April 2022 inventory levels were down 14.8% YOY, a dramatic improvement from March when inventory levels were down 33.9.% YOY. Heavy-duty sleeper trucks in the 7-year-plus age group historically represent 27% of the total sleeper truck inventory; as of April, that age group accounts for 36% of the total inventory.

The key metric used in all of Sandhills' market reports is the Sandhills Equipment Value Index (EVI). Buyers and sellers can use the information in the Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation, and related business decisions. The Sandhills EVI data include equipment available in auction and retail markets, as well as model year equipment actively in use. Regional EVI data is available for the United States (and key geographic regions within) and Canada, allowing Sandhills to reflect machine values by location.

Chart Takeaways
Sandhills Market Reports highlight the most significant changes in Sandhills' used heavy-duty truck, construction equipment, and farm machinery markets. Each report includes detailed analysis and charts that help readers visualize the data. This report offers a deep dive on used sleeper trucks with data broken down by age group and model year with an eye to decreasing auction values and increasing inventory levels, which have historically been leading indicators of downward asking values.

U.S. Used Heavy-Duty Sleeper Truck Inventory

Asking values have historically begun their decline when inventory levels turn; April marked the fifth straight month-over-month increase in heavy-duty sleeper truck inventory. April 2022 inventory levels were down 14.8% YOY, a dramatic improvement from March when inventory levels were down 33.9.% YOY.
Heavy-duty sleeper trucks in the 7-year-plus age group historically represent 27% of the total sleeper truck inventory; as of April, that age group accounts for 36% of the total sleeper truck inventory.

U.S. Used Heavy-Duty Sleeper Truck Values

The Sandhills EVI indicates heavy-duty sleeper auction values increased 62.3% YOY, a 7-percentage point decrease from the start of the year when auction values were up 69% YOY.
As shown in the graph, asking values for late-model sleeper trucks have displayed less decline than older models, likely due to the lack of new production available to replace the commercial trucks.
While auction values for sleeper trucks manufactured prior to 2015 have declined sharply, posting 40- to 60-percentage point YOY decreases since January, asking prices for sleeper trucks in that age group have decreased by just 10 percentage points.

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About the Sandhills Equipment Value Index
The Sandhills Equipment Value Index (EVI) is a principal gauge of the estimated market values of used assets—both currently and over time—across the construction, agricultural, and commercial trucking industries represented by Sandhills Global marketplaces, including AuctionTime.com, TractorHouse.com, MachineryTrader.com, TruckPaper.com, and other industry-specific equipment platforms. Powered by FleetEvaluator, Sandhills' proprietary asset valuation tool, Sandhills EVI provides useful insights into the ever-changing supply-and-demand conditions for each industry.

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