Used Truck Prices Up 16% | Owner Operator Best Practices
Event Date: October 29, 2018
Author: Ben Droessler
Transport Topics released figures in August showing a year over year increase of 16% in used truck prices. What’s more staggering is trucks 4-6 years old, the most commonly sought after by owner operators, are up 21%. So what does this mean to owner operators?
Higher truck payments. American Truck Business Services says the average owner operator’s truck payment is now $2,300 per month, increasing 15% over the past 3 years.
Maintenance impact. The average owner operator pays $900 per month for maintenance, which has stayed relatively consistent the past 5 years. Faced with the higher cost of replacing their trucks, owner operators may hang onto their old trucks longer. As a result, we will likely see this average increase.
Insurance values. Insurance companies use actual cash value to determine payout on total losses. Average used truck prices are a major factor in determining those payouts. If the truck’s insured value is less than actual cash value, the insurer will only pay up to the insured value. Now is a good time to have owner operators check their truck’s value with a local dealership and adjust with the insurance company if necessary.
Contact Ben Droessler with Cottingham & Butler’s Contractor Services Team.
Ben Droessler CIC
Vice President, Independent Contractor Risk