Improving Business, Stronger Demand Lift Prices for Used Vehicles

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he truck financing market, which nearly collapsed under the weight of surplus equipment two years ago, appears to be on the road to recovery as business prospects for trucking companies improve and strong demand has lifted prices for used trucks.

Spurred by easy credit and generous buy-back incentives offered by manufacturers, truckers bought a record number of new vehicles from 1998 to 2000 and produced a glut of used trucks.

In the two years that followed, finance companies took a hit as falling prices for used trucks undercut the value of fleet assets, thereby making it more expensive for carriers to buy new vehicles.

A slowing economy and high fuel prices in early 2001 made it more difficult for many existing borrowers to make their truck payments.

For the full story, see the Jan. 5 print edition of Transport Topics. Subscribe today.