Why Are Semi Trucks So Expensive Recently?

Discussion in 'Ask An Owner Operator' started by SeanQ, Nov 23, 2021.

  1. SeanQ

    SeanQ Bobtail Member

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    I got out of trucking in 2019 to pursue a different career. Then 2020 came and made everything super expensive. From the port congestions to the inflations, these are some crazy times. My goal was to make some money from selling my real estate and come back into trucking. I made money, but trucks decided to get expensive. The rates are high, the insurance is high, and the diesel price in California is outrageous. So to my fellow Owner-operators, do you think these prices are here to stay, or will we trucks get back to regular price soon? My used car is even making a profit right now. Are you guys happy with the rates right now?
     
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  3. Siinman

    Siinman Medium Load Member

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    Probably be about the same for a year. Once new production can keep up then it will be about ice.
     
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  4. Don379

    Don379 Medium Load Member

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    I see a trend of people saying things will change in a year on here. For new or used. This is absolutely not true if you follow what’s going on with current administration. In a year you might have a little more production if you are lucky but that’s not gonna change the prices on anything.
     
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  5. Ruthless

    Ruthless Road Train Member

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    ^^and production wont be able to catch up to what theyve already missed



    Additionally, inflation being what it is; prices will only come down for whatever downward change occurs in raw materials/ ie if steel price drops in half the total truck price will eventually have a reflection of that in terms of the input of that material.

    if someone sells real estate as a career: it would certainly be less financially rewarding to get out of that to go truckin.
     
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  6. skallagrime

    skallagrime Road Train Member

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    Housing crashes are a thing, not sure i fully agree with your bottom line assessment.
     
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  7. ProfessionalNoticer

    ProfessionalNoticer Road Train Member

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    Trucking is cyclical. It's always a roller coaster full of ups and downs. The only guarantee you get is that nothing is guaranteed! That's why it's imperative to squirrel everything away when the times are good because you can safely bet you'll need that stock pile to get you through the next down turn.

    Equipment, services, parts and all other expenses do go right along with each cycle in lockstep. A smart business owner knows that's when to spend some savings. When the market is slow your operating expenses will drop. That's the best time to shop for new assets or expensive wear items like tires.

    If you want to maximize your investment, wait until the next down cycle and you'll find plenty of trucks for sale for rock bottom prices. You’ll also be able to sink some cash into it to make it cycle proof at reasonable prices instead of getting gouged. So when the next boom comes you'll be ready to hit the ground running.
     
  8. Pamela1990

    Pamela1990 Heavy Load Member

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    Used truck and trailer prices are already on the decline here. Kenworth truck salesman told me new truck orders are being cancelled at a faster pace than he has ever seen before.
    Give it a year, then buy a used truck, prices are falling.
    Also, what some dreamer is asking for his old iron, means nothing. What someone is actually willing to pay for it is all that counts. Over the last years I've seen a lot of dreamers list their house and vehicles for sale, semi trucks to, hoping to cash in on this market they have heard about. They asked big dollars, and almost all are still for sale, or they finally just gave up and took it off the market.
    Had a neighbor asking $20,000 for his used Hyundai Santa Fe. The price has been dropping, and dropping. Drove by it the other day and saw the new sign in the windshield now says $6,000 and it's still there. Homes are now listed for less than half of what people were asking just 4 to 7 months ago. A few cashed in good, but many are disappointed this bubble didn't pay out as they had hoped. We bought our house in 2017, and paid substantially less than the asking price. While some people claim our house this past summer would sell for double or more than we paid, in reality its doubtful. Outrageous claims, should be taken with a grain of salt.
    A 2013 Peterbilt popped up for sale nearby, asking price was a whopping $150,000. Months later, it's parked there still, new asking price is $95,000, but no takers. My guess, when the price hits $70,000, someone will offer $50,000, and they may meet in the middle.
    A few suckers over paid, causing the bubble, but many were smart enough to sit it out, the big crash is near.
    Who remembers 2008? I do clearly, I was 18, it was messy for many. A good family friend lost their house, truck, and more. They lived in our motorhome, parked in the yard, for about 6 months, then rented a basement suite in the city. It looked like they were doing well. But were over financed, and the moment the economy began to dip, they lost everything. The short sale on their house, personal vehicle, and truck was substantial. They claimed bankruptcy, and had nothing much more than the clothes on their backs.
    It is going to happen again.
     
    Last edited: Nov 24, 2021
  9. Midwest1

    Midwest1 Medium Load Member

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    Prices will not “normalize” for a at least 2-3 years. Even at that point pricing will never be what it used to be. New truck and trailer pricing will just continue to rise.
     
  10. OldeSkool

    OldeSkool Road Train Member

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    There’s no telling what prices will do. Years ago fuel was really high and everyone was saying it would never get below $3 a gallon again. Last year I got diesel for months for just above $2 a gallon. Now many places it’s nearing $4.

    If you want to get into trucking, make sure you can find good hauls right now doing what you want to do and find a good truck and trailer for what you’re willing to pay and hammer down. If you go broke, the bank gets your truck and your credit gets shafted. Happens to many and many make a good living at it. Good luck!!!
     
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  11. Don379

    Don379 Medium Load Member

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    you live in canada young lady.
     
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