To buy or not to buy, that is the question for most truckers in 2024.
With such an overcapacity of trucks and trailers in the current market, many carriers have hesitated to expand their fleet—but is this hesitation justified?
Despite a saturated market, there are some conditions in a buyer’s favor. Here are some of the market considerations for buying in 2024.
2027 EPA Regulation Change
Of all the reasons to buy, the emission standard regulation change in 2027 may be a trucker’s greatest incentive.
The Environmental Protection Agency (EPA) is mandating the most significant emission standard regulation in 2027 since 2007. Following the change, the price of an EPA-compliant vehicle is anticipated to rise 10-12%.
Undoubtedly, the market can expect to see an influx of truck purchases prior to the regulation update. By purchasing a truck ahead of the rise in demand, carriers can potentially capitalize on less competitive rates.
Price Trough
2023 was a significant year for the trucking market. For the first 10 months, prices fell 4% for every month.
Unfortunately in 2024, rates have slowed significantly. The upside: It may not be too late. Prices may rise again in late 2024, making the present a potentially ideal opportunity.
Election Year
Despite the variables that may suggest buying is advisable, the election brings a strong element of uncertainty to the semi-truck market.
Election year typically brings a whirlwind of regulatory conditions that make for market curveballs. This additional layer of market volatility introduces some risk to semi-truck buyers.
Overcapacity
Significantly, the overcapacity of trucks and trailers is also a major consideration before expanding.
With the trucking market being in such a state of intense competition, it’s important to evaluate if there will be sufficient freight available in your area for a larger fleet.
Long story short: There is no definitive answer for carriers looking to expand their fleet. Though it is considerable to get ahead of the 2027 emission standards, the election and state of the freight market shroud any confident decision to expand.
Ultimately, carriers should exercise good judgment and perform their own evaluation of their local market when purchasing a new truck.
The England Carrier Services (ECS) division offers various services for carriers ranging from maintenance to support. As ECS members, carriers have access to nationwide discounts on fuel and tires from dedicated team members committed to finding the best price. ECS also provides factoring services with benefits such as same-day funding to a bank account or fuel card. These options allow carriers the freedom to focus on growing their business while saving time and money.