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Used Truck Trailer market in the United States - An Overview

There are thousands of suppliers and buyers of used truck trailers that usually buy sale of trailers used in the United Sates. The American Exchange, an Atlanta-based distributor of tow truck, estimated that the secondary (used) trailer truck market is approximately 400,000 units annually, which amounts to $ 3,000,000,000 in sales. dry freight vans, platform trailers, refrigerated vans and tank trailers constitute the majority of this team.

Trailers have a shelf life of at least twenty years.They usually traded on several occasions during their lifetime as they pass the long distance service to regional hauls, to use local cartage, and finally with the storage service. A rule of thumb is that trailers turn to market every five years and then used indefinitely as storage units. Average annual new trailer shipments of approximately 250,000 units. Trailers have a variety of specifications and configurations that determine their use and established in the market segments of purchase.

Sources Truck Trailer: The supply on the secondary market is somewhat fragmented trailers without organized national distribution system. There are only a few providers use trailer with a national dimension. The used truck trailers is made up of trailer manufacturers that take part payment for resale companies private and public, often selling excess luggage to dealers, equipment rental companies and banks to re-market their assets out of leasing through their asset management departments, a small number of companies that buy in large lots of trucking companies and redistribute national teams through distributors, and, with the 1500 team of distributors and brokers that serve the regional market areas. No single participant has more than 5% of the market. Fragmentation market often results in inefficiencies in the market with equipment that passes through the original seller agents, brokers and other intermediaries before reaching the final end user.

Types of companies contributing to the tow truck supply chain:

1. Manufacturers of trailers: There are over 100 manufacturers of trucks trailer in the sale of the United States, on average, 250,000 new trailers a year. The top 10 manufacturers account for more than 75% of total sales. trailer manufacturers have traditionally been an important source of trailers on the secondary market because they often are requested to take the machines used in business to sell new units. In recent years, however, the manufacturers have gone from reluctant participant active player because of their need to recapitalize our manufacturing operations. This recapitalization was achieved by closing branches factory for the franchise (usually non-exclusive) dealers, and for refusing to have some commercial packages, or the offer significantly less for them. Most manufacturers have reduced department staff use trailer for one or two employees who rely heavily on dealers to purchase this equipment.

2. Carriers: Trucking companies include both public and contract companies. public companies available to shippers on a rental basis for shipments that go from one room to multiple full loads. Contract dedicate equipment companies and drivers to shippers on an exclusive basis. According to Transportation Technical Services (TTS) is more than 27,000 trucking companies registered in the U.S. and Canada. With the exception of the largest companies, truckers do not specialize in the sale of their equipment. Sale of excess fleet trailers is more often the responsibility Maintenance Manager. The main objective of the Maintenance Manager is to purchase and maintain tractors and trailers. Because their performance is based on the availability and cost of fleet operation, the winding equipment is not a priority, which depends largely on the experience of dealers to sell the team. Typically, distributors are invited to make offers to buy used trailers available for sale of road transport companies or equipment sold at auctions wholesale.

3. Private carriers. Private companies are companies that operate a truck transporting the house division for its own goods, including manufacturers of all kinds, wholesalers, distributors and retailers. TTS says there are 19 200 registered private companies in the U.S. and Canada. The equipment is sold in a manner similar to de-truck rental companies, however, private companies tend to be more willing to deliver the equipment to dealers for reasons of space idle parking trailers.

4. Banking and Equipment Leasing Companies: Bank loans and equipment lease financing are the primary means for end users (transport companies and private companies) to purchase new trailers. Inevitably, banks and companies rental of equipment from time to time should recover possession when leases expire or credit defaults occur. Historically, this segment re-sell or lease trailers for the end user at the end of the initial contract period. The industry also sold to other buyers in the secondary market in order to increase the residual values and overall profitability of the leases. Portfolio managers usually containing a wide variety of asset classes generally do not have the resources to individuals specialize in a single asset class. They often look to experts to handle your management team and re-marketing needs, including negotiation returns the equipment, and transportation storage, repair and marketing of new trailers. Wholesale auctions are another method used to dispose of lease trailers and recover.

5. Dealers: According to the Department of Labor Standard Industrial Classification (SIC) system, there are more than 1,500 dealers in the States trailer USA. Most dealers are dedicated to representing several lines of new trailer manufacturers, offering repair services and parts sales and used trailers sales. Individual dealers generally the market within an area of local or regional market. Dealers buy used trailers through trade-ins, as well as the other four sources mentioned above. Distributors are the leading provider of used trailers to end users.

Used Trailer buyers (end users): Trucking companies, private carriers, manufacturers and distribution companies are the largest buyers of used truck trailers. Typically used trailer buyers are national companies that have no brand, medium to small companies and owner-operators. Most of these companies purchase trailers through more than 1,500 trailer truck dealers in the United States.

New trailers are often preferred national companies and major long distance companies for a variety of reasons, including the warranties of five years, accelerated depreciation, reduced maintenance costs, and brand image. Beyond the feature, trailers offer national brands consistent with the benefit of low cost advertising novelty through graphics on the sides and back of the trailer, just the image are important factors. On average, owners of large fleets sell trailers after five to seven years.

Unlike a car where style and image play an important role in determining the value to the owner, the functionality and the conditions are important for many truck owners tow. With proper maintenance, the life of a trailer can exceed twenty years. The price of a trailer age of five can have 75% of its remaining useful life is approximately half the original price, so often used trailers are an economical alternative most of the companies that send products.

For more information about truck trailers see the following website - America The Exchange ( www.amtrex.net )

About the Author

Greg Pratt has enjoyed a 32 year career in the semi-trailer sales and leasing business. He developed and managed a 15,000 trailer leasing company; managed a multi-branch trailer marketing firm; and, successfully liquidated trailer lease portfolios for investment firms, banks and equipment leasing companies. He founded American Trailer Exchange in 1992.

Greg is considered by many in the trucking and equipment finance industries to be an expert in his field. He is often consulted for equipment valuations and market trends.

Greg has an M.B.A degree from Roosevelt University-Chicago (1985), and a B.S. degree from Ball State University (1977).

Greg Pratt
President
American Trailer Exchange, Inc.
http://www.amtrex.net/

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