Waiting on New Trucks thread.

There are times when a good deal can be had on next to new equipment.

 

Thing I know about trucking O/O. Going out of business is a slow process. Months or years. It starts by cutting repairs.

Most used trucks sold by O/O that are not part of a reinvestment to newer equipment will be money pits of worn out equipment. Buying these pieces will bankrupt the new buyer. Never ending cycle of O/O dreamers.

 

Exactly this.

 

I called on a 579 O/O speced build with a 500 Cummins and salesman said it would be $240K. Peterbilt actually increased prices for their 2nd half builds. Salesman was shocked at another price increase and more shocked he only had 2 builds left of the 34 he started with. Granted this is a smaller non rush dealer so I don't know if they would be lower but if they are it can't be by much. I don't know if people are placing orders for the 2nd half of the year expecting this to coincide with the market rebound the experts are saying is coming.

I do not find it coincidental the past few days a bunch of new trucks have been posted on Facebook for sale by salesmen.

 

I noticed a 389 at Council Bluffs, IA Peterbilt listed on Facebook for $279k today.

 

Holy Sheet boys!

 

You would have to be insane to throw this kind of money away, you’ll never earn it back.

 

Im curious how long these units sit on the dealer lots growing rust

 

They picked the wrong to quit making the 389. There's only a very small group who's going to pay that insane price they are asking.

Auction prices continue to free fall today. This 2020 579, with a 455 PACCAR, went for $54,000. This was a $100,000 truck 6 months ago.

 

Months. There's no bank that is going to approve that amount of loan in this tightening credit market.

And if there's a cash buyer hopefully they are smart enough to take that cash and invest it in a 6 month CD at 4.5% and wait for the truck price to come back to reality and buy it.

But I truly don't know what their pricing strategy is. I don't know if they don't want to sell any trucks or they are absolutely certain a 2nd half rebound in the freight market will happen and there will be buyers at the price. But unsold inventory on dealers lots are costing them money too.