As an experienced truck dealer here in the UK, with decades of experience buying all types of lorries, trailers, and tractor units – not to mention selling and exporting – we often hear questions regarding used truck prices.
In recent years, it would be fair to say that the UK’s used truck market has proven to be incredibly unpredictable. While lorries, rigid trucks and tractor units of all makes and models experience substantial depreciation in their initial years (much like cars), well-maintained and low-mileage used trucks can retain or even appreciate in value. This volatility is influenced by various factors, including market demand, economic conditions and supply chain dynamics.
What Do Recent Trends Tell Us?
The heavy goods vehicle (HGV) sector in the UK has faced notable fluctuations. In the third quarter of 2024, the market experienced a 6.0% decline compared to the same period in the previous year. This downturn was primarily driven by reduced demand for larger trucks. Despite this, overall uptake remained above pre-pandemic levels, indicating a resilient market. At the same time, the second-hand truck market has shown signs of recovery from a period of scarcity. Stock levels are on the rise, suggesting a potential transformation in the market. However, in the short term, the available stock comprises older, higher-mileage trucks. As the market stabilises, prices and quality will be expected to improve.
Factors Influencing Used Truck Prices
There are plenty of different elements at play when it comes to the pricing dynamics of used trucks, so we thought it would be helpful if we ran through some of the key areas.
Supply and Demand: A limited supply of new trucks, possibly due to manufacturing constraints or supply chain disruptions, can elevate demand for used trucks, driving up prices. Again, this is something we’ve seen in recent years where the momentum for new trucks and trailers has dropped off, and we’ve seen older models increase in value.
Economic Conditions: Economic downturns can lead businesses to opt for used trucks over new ones as a cost-saving measure, increasing demand and potentially prices. Conversely, in a robust economy, there might be a higher inclination towards purchasing new vehicles, which would play a part in suppressing used truck prices.
Regulatory Changes: Environmental regulations, such as low-emission zones in urban areas, can also affect the desirability of older trucks. Compliance requirements may lead to increased demand for newer, compliant used trucks, influencing their market value.
Technological Advancements: The integration of new and advanced technologies in newer models of lorries can render older trucks less desirable, impacting their resale value. However, well-maintained trucks with essential features continue to hold value, especially among businesses prioritising reliability over the latest technology.
The Greener Shift: The UK’s vehicle licensing statistics indicate that at the end of December 2022, there were over 1.1 million licensed plug-in vehicles on the road, representing 2.8% of all vehicles. This shift towards electric vehicles, driven by environmental concerns and regulatory incentives, could impact the used truck market, especially for diesel-powered models.
Future Outlook
We can’t be sure on what’s to come, especially in such a volatile and fast-paced used truck market. However, the current trends suggest a stabilisation with the potential for price normalisation. It’s clear that economic conditions, regulatory changes, and technological advancements, will play pivotal roles. Businesses and individuals considering the purchase of used trucks should stay informed about market developments and conduct thorough assessments to make informed decisions. Are you looking to buy used trucks, or perhaps looking to sell your lorry? At Truck Trading, we remain up to speed with the factors influencing pricing can aid buyers and sellers in navigating this complex landscape. Whether you have any questions, want a valuation or have seen a truck that could be just right for you on our website, please don’t hesitate to send us a message or call our friendly team today on 0161 432 1477.
