Truck prices are insane

Maybe you're right but I'll let Einstein deal with relativity....like the poet @Western flyer just said...no matter what they pay for the truck, the rates are going to be the same. Unless...he's got himself a gig where he travels to the moon and hauls back a moon dust for NASA or something like that.

 

I took the average price on trucks for each year on truckpaper.com.
Looks like you're going to lose 20k per year no matter what until year 5...then the value starts holding better.

 

The spot market for dry van has been an absolute crap for yesterday and today. It's funny how things can change basically with a flip of a switch.
People who are paying insane money for the equipment, probably are fresh to this and think that things will just stay that way forever.
Those of us, who have seen ups and downs during last few years, just can't wrap their head around what's going on lol

 

I guess I don’t follow the logic. If someone is financing a certain amount during “normal times” then how is financing that same amount now any different? Everything is inflated, it’s not like used trucks are worthless and newer trucks are double.

 

Inflated also means it can let air off and I can argue that sooner than later. Now Wise people cash out, fools buy.
I see today that $200K worth trucks are hauling water from Pleasant Prairie, WI to Rockford, IL for $699 vs $1200 two months ago. Must be one of those fools... How's that for inflation?

 

Ok, you are right. If someone can sell their current truck for double what it’s worth but they then have to buy a truck for double what it’s worth then even though they would be into the newer truck for the same spread in price as a year or two ago they should sit on their current worn out truck instead of sending it down the road to be someone else’s problem. A new owner operator would be foolish to jump in right now but many are. Those are the guys buying an emission truck with 5-600k on it for $100k right now. A lot of the higher dollar stuff is likely guys that are upgrading and have moved their old truck for a good chunk of money. I had a guy call me about my truck on Wednesday because he just sold his 96 Pete with a 12.7 Detroit for $105k. So would he be foolish to take that money and upgrade to something 23 years newer with 2 million less miles because the purchase price is $200k?

 

I wouldn’t be surprised if someone went for that, actually. Let us know if your PM’s start lighting up. I’m reading that Brandon is going to offer 500k to come across the southern border. 225k is nothing.

 

If I were him, I'd wait and enjoy life at least for a year, unless the bust happens sooner. The prices of used trucks will plummet down even faster than they did go up. Even though the records were set now, rest assured, even with these rates - at least on the sport market, nothing justifies paying over 200K even for a new equipment. I've seen it happen at least twice in the last 8 years.

 

How does that work in California having those older trucks? Is there an exemption for them because they are used for forestry work?

 

I don’t think you’re understanding what he’s saying. In more normal times if you sell a truck for $50k and buy one for $150k there’s a $100k difference.

Today, you could sell the same truck for $100k and buy the other truck for $200k still spending the same money in the end.

If you are adding to a fleet or starting out and paying today’s prices I think you’ll regret it come next year.