Bank Exits and Prolonged Freight Recession Squeeze Truck Financing for Mid-Size Fleets, Driving Rates Up to 12% or More
A 3.5-year freight recession has led many lenders to exit the U.S. truck financing market, simultaneously shredding the credit profiles of carriers most in need of borrowing. This has resulted in a squeeze on equipment replacement cycles, with financing rates ranging from approximately 5.25% for investment-grade private fleets to 12% or higher for lower-credit small operators. Mitsubishi HC Capital America's executive vice president Kirk Mann noted that 85% of motor carriers with less than two years of operating experience failed during the downturn. Used Class 8 truck prices, which peaked near $118,000 in early 2022, have since settled at $60,986 as of September.
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