As many of our long-time partners and competitors read this post they will likely say…oh boy, what is Chisholm talking about now but I felt it was a good idea to share some insight into our marketplace as I see it. I have been a leasing guy all of my life and the truck market throughout the years for me has always been an interesting indicator as to what is really going on with the economy. Having leased thousands of trucks over the years both on our books and on our partner’s books it is becoming painfully obvious that good used trucks are harder and harder to find.
Right now we have an interesting twist….
New Canadian trucks prices are at an all-time high driven by the CDN VS USA dollar. Our buyers and lease customers are struggling to handle trucks that are now priced in the $200,000 range. This means many clients are simply not trading in their trucks and are rebuilding and retrofitting what they have. The only exception to this is the early emission trucks that were extremely problematic.
So simply put customers are keeping their trucks. How do we help them?
We have always been a much larger used truck lender vs new truck due to the fact that the factory finance companies do a good job on new and rightfully they should to keep their factory order board full.
We have no issues leasing older trucks especially heavy spec and or specialized tractors that have been refurbished whether it is a client coming for a sale-leaseback to do the refurb or a client acquiring a used truck that has been refurbed.
It is my opinion the used truck market especially in the heavy spec arena will reflect an upward spike in values over the next few years as clients try to keep their fleets running.
CEO Chisholm Group