An Overview of Used Truck Trailer Market in the United States
Used trailers have a big market in United States. There are thousands of suppliers as well as buyers of used trailers. Dealer of a renowned Atlanta based trailer company, American Trade Exchange, estimates that around 400,000 units of used truck trailers are sold annually, equaling almost $3 billion in sales. Platform trailers, dry freight vans, tank trailers and refrigerated vans constitute the majority of this equipment. Trailers generally have a life of at least 20 years, and during this span, they are traded a lot of times. They have different specification and configuration, which determines their use. It is one of the major determinants of its price in the market.
Major Contributors in this supply chain.
- Trailer Manufacturers: In United States, there are over 100 truck trailer manufacturers, selling approximately 250,000 new trailers annually. In this, contributions from the top 10 manufacturers account over 75% of the total sales. Trailer manufacturers have been the biggest source of trailers in the secondary market, as manufacturers are requested to take used trailer in order to sell new units.
- Trucking Companies: Trucking companies include public and contract carriers. As per Transportation Technical Services, there are more than 27,000 registered trucking companies in the United States and Canada. In the wholesale auction of used trailer by trucking companies, generally dealers are invited to place bids for the purchase of equipment and trailers.
- Private Carriers: According to Transportation Technical Services there are around 19,200 registered private carriers in the United States and Canada. Used trailers and equipment are sold through auction. Private carriers are more willing to sell equipment as they have limited space to park unused trailers.
- Equipment Leasing Companies & Banks: Bank loans and equipment lease financing are the main source of finance for anyone who wants to acquire new trailer. Equipment leasing companies and banks occasionally regain possession when the tenure of the leases expires or a credit default occurs. These financial institutions then re-lease or resell the trailers to trucking companies and private carriers. They also sell to buyers in the secondary market, so they can increase overall profitability of the lease.
The main buyers of used truck trailers are private carriers, trucking companies, manufacturing and distribution companies. These equipments are generally bought by mid to small size firms. Buying used trailer is a profitable deal for companies as they can get it for almost half of the price of the new one.
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