Truck repos increase significantly in ’07

ROSLYN HEIGHTS, N.Y. — Repossessions and liquidations of tractor-trailer trucks in the U.S. increased 110 percent in 2007 compared with 2006, according to Nassau Asset Management’s NasTrac Quarterly Index.

Nassau Asset Management cited several reasons for the large increase. Leading the way is the decline in homebuilding, which affects a number of peripheral business sectors, most of which utilize trucks.

“From the forest to the saw mill to the construction site, along with the movement of people in and out of those homes and the delivery of appliances and furniture to the home, there are trucks involved in every step of the process,” the company notes. “The rings continue to expand out of the housing epicenter.”

In addition, government regulations (including hours of service), rising fuel costs and competition placed greater financial strain on businesses that utilize trucks. Low interest rates in the past few years and significant sales of the remaining trucks with ’06 engines as compared to the less proven ’07 versions with tougher emission standards, led to an increase in late model trucks on the market, driving down prices in the used truck market.