Why Are Semi Trucks So Expensive Recently?

You think these truck prices are due to the current president. Truck prices were already climbing when the orange guy was in power and trailers were impossible to find.

We’re North of the border where nothing gets made. When there’s a cycle we’re at the tail end of it.

 

To presume cyclicity it the most difficult challenge. It is not as simple as expecting daylight after night....It is soooo difficult to overcome the mental counterintuitive blockage to buy at the time of misery but indeed the experience shows that's the best time to buy. The mind works in a rather peculiar way. Once the good times come, it thinks that they will never end and during bad times it thinks that it will be like that forever.

 

oh boy, here we go. Two points of bs. First a liberal outsider taking jab at the GOAT and then second outsiders looking in telling us how it is.
Worry about Canada.

 

True, nobody has a crystal ball to predict the start/end but it's easy to see it once it starts.

 

A lot gets made here.
I have 3 new trailers on order, all made in BC. K-line lowboy, Allweld fuel trailer, and Freflyt logging. Its just the bubble is starting to break, and prices beginning to fall.

 

It's Chips. A salesman at FL said 56% of the orders were filled this year, mainly due to lack of chips. Chip shortage is supposed to get better in Q3 of 2022. There are other shortages too.

Covid helped in this obviously. Some factories have been down for a couple of months over the course of 18 months. Plus chip usage went from 250 a car to over a 1000 in some electric cars. They haven't built new factories for these chips in a couple of years. Auto chips are older in structure and architecture, not cutting edge. They also have a lower profit margin compared to cell phones, laptops, ect....

 

Probably be this way for a couple years. Couple weeks back, I was at Volvo with my boss picking up one of our trucks from service, Dealer GM and my boss are friends, he was saying they are already sold out through end of model year 2022 for new trucks, has pre-orders for 30% of his 2023 allocation, although he can't officially take those orders till April of 2022. He was saying that one of his customers has ordered 60 new trucks, and his currently selling all his 2017's (30) for $85K ea (normally $45k), within 3 days of putting one up for sale it sells.

 

Sounds like its different in BC. Here stateside there's a massive shortage of good new and existing homes. Been watching my local real estate closely for the past 6 years. If you had bought a home for $175,000 back then (2017) you could have negotiated that down from $185,000. Today that same house put on the market for $250,000 would be sold in a matter of days normally for more than asking price.

Anyone who decides to cash out better have the next home they're buying already lined up. Because if they don't they're not likely to find it. And what would have bought a 1700 sq ft house in 2017 will get a 1200 sq ft one now. And good luck finding a rental around here.