Author: DPA Auctions

Back in June, we published an article addressing the surge in inventory levels within the agriculture equipment market. This increase was instigated by the post-pandemic recovery initiatives, prompting manufacturers to compensate for the previously diminished equipment inventory. The scarcity of equipment had previously elevated the value of both new and used items in the market. However, the subsequent influx of inventory led to an overall decline in value.

This was a trend that was predicted to go beyond summer and even continue into 2024, with Sandhills Global reporting back in August that the market industry-wide was trending towards equipment decreasing in value. A few months later, we see that most of those trends have come to fruition, as equipment auction values and asking prices are down. There is one exception to this downward shift, however:

High Horsepower Tractors.

As of the November 6^th report by Sandhills Global, the value for used 300+ Horsepower Tractors has remained stable and even increased despite major inventory growth. The report stated that inventory levels rose 3.29% since September, with asking values rising by 0.27% and auction. Values by 0.66% during that same time frame. Since October of last year, inventory has risen by 84.19%, with the asking price up 10.47%. Since last year, it should be noted that auction values are down by 0.86%. However, that is still a surprisingly low decrease, considering how high inventory levels have risen.

Other auction sites have noted this trend, seeing that asking and auction values remain steady or high despite the major inventory increase. While this can be attributed to a shifting market, and the value will cool down and trend downwards again, it might not do so until after December.

That makes the remainder of 2023 a prime time to auction off a used high-horsepower tractor before asking, and auction values catch up with the rest of the agriculture equipment market and correspond with inventory numbers.

If you’re interested and looking for a trusted auction resource that wants to work with you and help you get the most out of your used equipment, reach out to our team here at DPA Auctions. We stand out from the competition as the premiere platform for selling and buying used farm equipment, empowering buyers and sellers alike with friendly, intentional, and honest. With DPA Auctions’ expertise in the auction industry, sellers can navigate this market landscape with confidence, maximizing their chances of a successful sale. Don’t miss out on this opportunity—choose DPA Auctions for your equipment buying and selling needs.

Auctions have always been a staple of marketplaces and public forums, dating back to being utilized in ancient times. It allowed for a gathering of the community to purchase and bid on products, with the products at auctions ranging from priceless art to cars. It has a rich history that spans several cultures and eras of world history and continues to be a staple in American rural and farm communities.

While certainly existing before, the start of auctions as we know them today can be attributed to the Roman Empire, which adapted the process from the Greeks. Rome is noted as the start, however, as it was the first entity to officially license auctioneers. A famous story often told concerning auctions is possibly the biggest auction to have ever taken place, where, following the assassination of an Emperor, the Praetorian Guard auctioned off the entire Roman Empire to the highest bidder in 193AD, leading to wealthy and affluent senator Marcus Severus Julianus, who won it against the father-in-law of the last emperor, Titus Sulpicianus. You can read the full story here. From Rome and its vast influence, the culture of auctions was spread and continued on long past its fall and went on to be utilized by countries throughout Europe and beyond.

Auction culture was brought to America with the first Pilgrims and brought to the expanding colonies an easy means of selling land, crops, and farming equipment to one another. It remained a popular medium as the colonies gained their independence, with long auction lists spanning taverns across 1700s America. George Washington was considered an avid attendee of auctions, as were many of his peers. As the US grew and expanded, auctions remained a focal point in towns and cities. In the mid-1800s, following the Civil War, military colonels would sell off loot and surplus supplies from the campaigns. Since only Colonels could conduct these auctions, a tradition formed where some auctioneers would dress and be referred to as colonels. In 1906, the Jones’ National School of Auctioneering and Oratory was founded in Davenport, Iowa, to train and license professional auctioneers. Popularity waned during the 1930s, however, as the Great Depression hit the world and wouldn’t rebound until after World War 2 in the 1950s. 

Auctions would see another transformation in the 1990s, as technology such as fax machines, phones, and better access to picture-taking became more readily available. Auctions burst onto the internet scene very early on, with Ebay being founded in 1995. The integration of technology allowed auctioneers to better streamline the process and expand their potential audience tenfold. While before, auctions were constricted to being in a physical building in a part of town, now people from across a region could see and participate in purchasing art, land, and other valuable objects.

While the mode of auctioning has changed a lot over the past several, the heart of the auction has always remained, especially in the rural and farming spheres. Auctions have become a lot more than a means to purchase or sell an item: it was an event that brought people together. Whether family or friends, it presented a time for the community to gather, share drinks, and catch up with each other again. It was a time of interpersonal connection, which has become a point of worry with the transition from in-person to online.

This is an area where DPA Auctions stands firmly in keeping the familial community aspect alive. We strive to stand out as a friendly and familial resource in the auctioning industry. Coupled with blunt honesty and a genuine desire to help, our representatives want to help you ensure your auction is successful and will work with you in every aspect of the process. For us, its more than an auction: it’s about forming that lasting relationship.

Agriculture is undergoing a remarkable transformation in the modern era, thanks to the fusion of traditional farming practices with cutting-edge technology. Agriculture Technology, or AgTech, has led to unprecedented advancements in farm equipment and technology, helping farmers automate some of their more time-consuming tasks, help with resource allocation, and in the long term, save farmers money while still generating high crop yields. While the introduction of robotics and AI into the agriculture sector has introduced a lot of different innovations, from farming options in urban areas to utilizing drones, modern AgTech is making farm equipment more efficient.

Automation 

Smart technology, assisted by AI, is helping farmers automate menial tasks. What used to eat up hundreds of hours and require a lot of manpower before can now be done automatically with a machine, freeing the farmer and his staff to complete other jobs that need to be done or focus on more pressing matters. Companies such as John Deere have already jumped into the robotics scene, with their first fully automated tractor and tiller coming soon.

There are a lot of benefits that come with automation, such as helping farmers address staffing issues. According to Plug and Play, the cost of labor makes up for over 50% of the expenses of growing a farm. Combined with the labor shortage, being able to automate some of your processes could go a long way in freeing up both money and time to focus on growing your farm. Automation also allows for higher crop yield, as we will touch on later when we reach precision.

An example of how farm equipment is helping automate farming, other than self-driving tractors, is the Carbon Laserweeder. Using software that can identify over 500 million weeds across 40 different crops, the equipment uses precision lasers to burn the weeds and leave the crop untouched, saving farmers the time and grueling manual labor it usually takes to hand-weed fields (Here is a video to see it in action, it’s really cool!). It is also a cheaper and healthier alternative to using herbicides.

Precision 

Beyond equipment and robotics, AI and software are helping make farm equipment more precise. It is a valuable market that only continues to grow, with a report by Grand View Research, Inc. predicting that the precision agriculture market will reach $43.4 billion by 2025. As farmers look to grow their operations and take on bigger crops, these new innovations can become an invaluable asset to help farmers regulate resources, assist in tasks (such as the Laserweeder being able to identify types of weeds instantaneously), and maximize crop yields.

An example would be Clarity™ by Precision Planting, a planter upgrade that acts as an advanced flow and blockage monitoring system. The upgrade allows farmers to see more exact, high-definition details when it comes to the flow of seed and dry fertilizer. Clarity improves overall performance and was built to be compatible with sensor equipment farmers already have.

Another example is Farmwave, a camera-based upgrade for combines that helps reduce crop waste by monitoring loss autonomously and informing the farmer why and where it’s happening. Early users of the upgrade reported saving up to $8,000 worth of crop yields thanks to the software.

Drones

Farms are already harnessing the power of innovative technology and drones. As of 2023, the agricultural drone market is at $3.807 million and expected to grow to $14.237 million by 2033 with a CAGR increase of 14.1%, according to Fact.mr. They are increasing in popularity thanks to their versatility for small and large farms alike. Drones can fill numerous functions, from monitoring field conditions to fertilizer and seed distribution, helping automate tasks that used to take a lot of time and money to accomplish. Most recently, drone and machine learning AI technology are merging to help with crop monitoring.

A cool application that shows off the potential of both AI and drone tech would be its seed distribution and planting technology. In an article by Evening Star, drone technology was highlighted in efforts to replant depleted tree populations. Now it’s estimated that with ten drones and two human operators, 400,000 trees could be replanted a day. If, at this stage, drones with human operators are able to accomplish this, it’s not hard to imagine the application to agriculture and field planting.

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As technology continues to evolve and innovate, farmers can streamline their operations and make the most of their time and money. Whether it’s purchasing new or upgrading their existing equipment, farmers are given more opportunities to scale their farms and increase crop yields.

Whether you’re looking to sell your old equipment or purchase used machinery for your fields, DPA Auctions is here to help! Our dedicated team is ready to help you evaluate and sell your equipment and get you the money to put towards some new farm machinery. Our approach is rooted in building strong relationships and treating our clients like family, with your success as our top priority.

Ready to make the most of your equipment investment? Reach out to us today and discover why DPA Auctions is the premier choice nationwide for selling your equipment. We look forward to showing you the difference we can make for your auction experience.

 

In the ever-evolving world of post-pandemic adjustments, the market for used trucks is experiencing a shift. While it’s true that inventory levels are on the rise, there are signs that prices are starting to flatten out. This presents a window of opportunity for sellers to act and capitalize on the current market conditions.

During the pandemic, when new truck production slowed down, the demand for used trucks soared, driving up their value. However, as the market has begun to balance itself out with the resumption of new equipment production, selling values have gradually decreased, offering buyers the chance to secure excellent deals and sellers the opportunity to upgrade to newer equipment.

Industry statistics reveal that the market continues to favor buyers, indicating that sellers should take advantage of the current state of affairs. Trends suggest that truck values will continue to decrease heading into the next year, making it crucial for sellers to act promptly.

While projections from CCJ Digital indicate a potential 40% drop in the truck market by year-end, it’s important to note that delaying the sale may result in extended waiting periods for a better time to sell. In line with this data, Sandhills Global’s analysis, based on their vehicle sales index, reveals a notable rise in semi-truck inventory levels, with an increase of 14.63% between April and May, and an impressive 41.49% growth since May 2022. Correspondingly, auctioning values have decreased by 30.12% since May 2022.

Considering these insights and CCJ’s findings, it’s evident that auction values for semi-trucks will continue to decline throughout the year. Therefore, acting now becomes paramount. Delaying the sale further will only result in greater depreciation of your truck’s value. When it comes to choosing an auction company that can maximize your investment, look no further than DPA Auctions.

At DPA Auctions, we prioritize the needs of our sellers and work closely with them to ensure they get the most out of their equipment. We offer comprehensive appraisal services, effective marketing strategies, and streamlined paperwork processes. Our approach is rooted in building strong relationships and treating our clients like family. Your success is our top priority, and we demonstrate that commitment through our conduct and business practices.

If you’re ready to seize the opportunity and maximize your truck’s investment, contact us today! Discover why DPA Auctions is the premier choice nationwide for selling your equipment. We look forward to showing you the difference we can make for your auction experience.

Recent 2023 market reports show that farm equipment inventory is rising across the board, spelling an excellent opportunity for potential buyers and sellers alike to start paying attention to auctions. With this rise occurring in both used and retail markets, the overall value of the equipment is dropping. This drop signals the perfect time for buyers interested in used and new equipment to see what they need. 

According to Sandhills Global, inventory levels rose across the board for everything from trucks and trailers to construction equipment and farm machinery. When inventory is up, values for said equipment also tend to drop. For example, in a May report concerning rising inventory, Sandhill’s stated that a 4-year-old sleeper truck initially worth $120k this time last year was now valued at nearly a third of that, going for $80k YOY. This continues a 20% dip following the value rise/low inventory between 2020 and 2022. It should be noted that, while still being part of this overall dip, farm equipment is holding steady, only dropping 0.29% from April, while the value is 6.37% higher than last year. 

This value dip is excellent news for buyers, who can go into auctions knowing they can get a great deal on farm equipment. This can also be viewed as great news for the seller. Despite the drop in value (which is still higher than it was in April of last year), the state of the market means that your equipment might start at a lower value but has a higher potential of being bought. On top of that, rises in inventory for the used equipment market usually signal the same in the retail market. If you want to purchase new equipment, selling your old equipment to buy new retail might be in your best interest. 

Given the current market conditions, DPA Auctions stands out as the premiere platform for selling and buying used farm equipment. Sellers can capitalize on this market trend and attract a larger pool of potential buyers, while buyers can look at getting affordable used equipment. With DPA Auctions’ expertise in the auction industry, sellers can navigate this market landscape with confidence, maximizing their chances of a successful sale. Don’t miss out on this opportune moment—choose DPA Auctions for your equipment buying and selling needs.

At first glance, preparing for an auction may seem like a daunting task with many risks involved. While tensely waiting for the big auction day, there are many questions that come to mind, such as how you can make sure your equipment sells at a price that makes the investment worth it. People won’t want what you’re selling if it appears to be in bad condition or is going at a price that would make it more worthwhile to simply buy it new. That’s why preparing accordingly in the weeks ahead of the auction is crucial. It could determine whether someone puts that bid you need on your equipment.

Research

Knowing what you’re getting into ahead of an auction is essential. What exactly are you supposed to research, however?

Equipment: Before you do anything, you need to understand the equipment you are looking to sell. It would be best if you asked yourself a few key questions:

• What is the year/model of your equipment?
• What condition is it in?
• Is there market demand?
• Are there any unique features or upgrades?
• Will repairs need to be done before or by the time of the sale?
• What is the history of your equipment?
• What is the going price for used/new versions of your equipment?

Auction: It’s essential to understand the process and timetable of the auction, as preparations can take a few weeks, as well as be able to sit down and form a positive relationship with the company you will be doing business with.

It’s also important to understand that there will be costs going into the auction before the sale. Understanding the initial investment, percentages, and what marketing packages are available to you is vital as you construct your budget and determine whether auctioning your equipment at this time is a good step or not.

Equipment Appraisal

Once you are confident you have all the information you need and have confirmed you want to commit to going to the auction, the next step is making sure your equipment is ready.

When you went through the checklist in your research, you should have noted the equipment’s condition and if it needs repairs. It might be worth investing some money to repair and touch the equipment up. Eventually, pictures need to be taken of your equipment, and people won’t want to buy anything that either looks like junk or doesn’t function as intended. Investing a little more in the equipment and touching it up might be what convinces someone to place that bid.

Meeting with the Auction Rep

Meeting with a trusted Auction Representative is the next big step in preparing for the auction. While other auction companies have different procedures, they will be able to solidify costs, explain their system in full, and inform you of what else you need to get ready. It’s crucial in this step to ensure that you have a positive attitude and form a good relationship with the auction rep, as they will be the ones helping you throughout the rest of the process.

Where DPA Auctions Stands Out

With that in mind, picking a good auction company that cares for you and your equipment as much as you do is essential for this two-way relationship. This is why DPA Auctions strives to stand out as a familial and personable company in the auctioning industry. Coupled with blunt honesty, DPA Auction Representatives want to help you ensure your auction is successful and will work with you in every aspect of the process. We will even help with things like marketing and taking pictures of the equipment personally to ensure we get what we need to sell your stuff.

If you want to learn more about DPA’s process, check us out and see why we are the best choice in the nation to sell your equipment.

Many factors have impacted the tractor markets these past few years, with the pandemic and fears of a coming recession being some of the more major ones. While some of the negatives have shown themselves, such as with smaller tractors, there have also been surprising increases in value despite these factors and increasing inventory. With tractor values on the rise, now might be the time to analyze if it is time to sell your tractor.

According to AEM, there has been a market value increase for two specific types of tractors: 100+ HP tractors with two-wheel drive and 300+ HP Tractors. For 100+ tractors, the value grew by 22.8% in the US, showing a continued month-by-month rise that has been increasing throughout 2022.

300+ HP Tractors have also been on the rise, according to Sandhills Global, which showed them steadily increasing by 1.84% M/M and 12.52% YOY against decreasing inventories, which is down 21.13% from last year. The auction value for used high HP articulating tractors increased by 18.04%, with row crop tractors rising by 16.8%

Now is the time to examine whether or not you should auction your tractor. With DPA, you are guaranteed to be treated like family, not just a client: we want to give you the best experience possible with enhanced marketing, and streamlined sales through a straightforward, no-hassle auction process. We also offer the lowest commissions in the industry, making you and your equipment our top prerogative.

With talks of a coming recession having plagued most of 2022 and continuing to persist into 2023, it’s easy to see why people are hesitant to sell their equipment on the market. With the stability of the market having been in question since last year, stocks plummeted for established equipment companies such as Deere (-6.9%) and Caterpillar (-6%), according to a report from stock research site Seeking Alpha back in June of 2022. The mounting fears have made people resistant to wanting to sell their equipment, wanting to instead weather out the storm that has yet to hit.

If you look at some of the data, the recession fears are still taking a bit of a toll, though certainly not as bad as it could be. When it comes to heavy duty trucks and semitrailers, values are shifting downward, with an inventory increase of 30.49% from where it was in February of last year. While the numbers show that inventory number is decreasing by over 2% per month, the value the trucks has still taken a hit.

So why is now a good time to sell your used equipment?

Despite the fears of recession and contrary to other reports, the market value for used farm equipment has steadily been on the rise. According to Sandhills Publishing, who has done extensive research using their own equipment value index system (EVI), the inventory for farm equipment (ranging from Tractors to Combines) has followed the trend of increased inventory, with the numbers showing an increase of 6.43% per month and 10.61% from where it was last year. Despite this long-term inventory increase, the asking and auction value for equipment remains high, with the auction value showing that equipment value is up by 8.55% from where it was last year.      

It is important to make the distinction that the value remains higher than it was despite increased inventory, as usual trends show an increase in inventory leads to declining value, as shown with the semitrucks example above. Despite this inventory increase, going against this trend, the value of selling farm equipment is growing from where it was last year.

We can look at our own auctions to show that people are still able to confidently sell their equipment. Between December 1^st of 2022 and our most recent auction at the time of writing this post (February 7^th, 2023), we have sold high numbers of equipment. In that time frame, for example, we have been able to sell 62 self-propelled sprayer vehicles were sold. This is compared to during the same period last year where only 50 of these kinds of vehicles were sold.

With the market trending upward and the predicted recession continuing to be delayed, now is the time to sell off your used equipment, and DPA is ready to help. We offer some of the lowest commissions on the market, while also providing a top of the line, no hassle experience that combines amazing customer service with an all-in-one process that handles marketing, title, and money transfer. There are very few auctioning companies that offer all of these, and that’s because DPA Auctions is family owned and operated, wanting to see all of those who partner with us, both buyer and seller, get the most out of their time and money.

If you would like to jump on the equipment value trend, or are interested in selling through DPA Auctions, check out our selling page, or contact one of our friendly DPA Representatives. We would love to partner alongside you and see you get the most from your investment.

DPA Auctions strives to build strong relationships of trust with all of our customers. When we expand into new markets we carry with us the same core values our business was founded upon 50 years ago—innovation, hard work, and family.

So, when Waymore Transportation, Inc. entrusted us with their business we made it our priority to provide them with a seamless selling experience.

Located in Fridley, Minnesota (15 minutes north of downtown Minneapolis), Waymore Transportation, Inc., is a refrigerated transportation company delivering to the West Coast, Northwest, Texas, and the Southeast.

They contracted DPA Auctions to sell five 2017 Kenworth T680 trucks and one 2019 Kenworth T680.  We sold three of the trucks at our July 5th auction and three at the July 19th at an average of $60,125 per truck.

“I was very impressed with my experience with DPA,” said Dave Wecker, co-owner of Waymore Transportation. “In closing I would use the service again and recommend DPA to anyone.”

DPA Auctions innovates to a level of pressing the status quo. Our success hinges upon the following:

Multi-faceted Marketing Platform
Our enhanced marketing techniques target clients all across the United States and internationally. By harnessing the internet and social media, we have the ability to target buyers that are in need of your items.

Innovative Technology
DPA Auctions embraces technology to work more efficiently and effectively for our buyers and sellers. Our intricate data processing and telecommunication system finds and unites sellers with the most compatible buyers. We handle it all—accurate listings, money transfer, title transfer, and a very secure payment process.

Competitive Commissions – We have the lowest commissions in online auctions. We believe it is not our duty to charge more and give less, but rather charge less and give more.

Educated Advisors – We have a highly educated team of advisors dedicated to providing services to our clients that is both professional and personable.

Waymore Transportation selected our “preferred package” package to sell their trucks. On average, items that used the preferred marketing package receive a 25% increase on bids and an 18% increase on price. The package features: 

• Hyper – targeted boost on Google, Facebook, Twitter and Instagram
• Direct Link for potential buyers to the items listed
• Featured Seller Section on emails sent to DPA Auctions’ email list
• An estimated 1,000,000+ impressions to the listing

As a family business, our goal is to treat our customers with honesty, respect, and open communication. Our customers are our number one priority. Let our experienced team of advisors assist you every step of the way with all of your selling and/or buying needs.

DPA Auctions
Customer.service@DPAauctions.com
800-492-9090

Change is often challenging—especially in an industry deeply rooted in tradition.

There once was a time when farmers had to transition from horses to tractors in order to remain successful; but it didn’t happen overnight. John Froelich invented and built the first gasoline/petrol-powered tractor in 1892. It wasn’t until 1945 when tractor power finally overtook the amount of horse power on American farms. That’s fifty-three years!

Today’s technology is forging ahead at lightning speed. Even though it can be intimidating, more and more farmers are incorporating technology into their day-to-day operations and realizing the benefits of technology-enhanced equipment.

 

Software, Sensors, and Soil Sampling

Research conducted by the Context Network reported that more than 80 percent of farm operators they surveyed are using yield monitors, GPS and soil sampling technologies.

Software tools can provide real-time field scouting and conditions reports. Sensors and soil sampling enable on-the-spot decision-making tied to the bottom line, and a variety of farm information management systems exist that make inputting operational and financial data easy.

 

Precision Agriculture Technologies

Equipment featuring precision agriculture technologies has greatly increased over the past two decades. A recent study published by the Association of Equipment Manufacturers (AEM) highlighted five key environmental benefits achieved through adopting precision agriculture:

• Yield benefit through increased efficiency
• Fertilizer reduction by more precise placement
• Pesticide reduction by more accurate application
• Fuel savings due to less overlap and better monitoring
• Water savings through more accurate sensing of needs

 

Tractors

Externally, tractors have looked basically the same for decades, but many of today’s tractors feature advancements in technology that our fore-farmers never imagined possible. Global position systems (GPS) technology facilitates self-driving tractors and combines while other innovative technologies assure that engines run efficiently and in compliance with today’s environmental regulations.

Most of this technology runs on a fixed program (software) that requires input from the operator. But, future tractors will use artificial intelligence (AI) to evaluate the terrain ahead, recognize any changes/obstructions, and automatically adjust/adapt to the current conditions.

Tractors of the future will be data incubators digitally connected to the world through the cloud (servers that are accessed over the Internet, and the software and databases that run on those servers).

 

Innovations in Harvesting

As the world’s food resources continue to be burdened by population growth and climate change, technology is helping to bridge the gap between rising food demand and scarce agricultural resources. According to the US Department of Agriculture, labor amounts to almost half of the production costs for lettuce and more than a third of the cost for crops such as peaches, tomatoes, and spinach. Innovations in technology reduce the reliance on labor, which helps combat the increased shortage of agricultural workers and lower its sizable share of total costs.

 

Robots

Various robots are being developed to pick fruit and vegetables. One example is a strawberry-picking robot created by US-based Harvest Croo Robotics (HCR). It is capable of harvesting the same quantity that a team of 30 workers could achieve in a day.

With six picking claws per robot, each harvester has 96 picking claws ready to harvest, as the harvester autonomously navigates its way through acres of strawberries. Their artificial intelligence and machine learning vision system scans each berry on a plant determine if it’s ripe, healthy, and ready to be picked. The harvester is then set to pick a berry without damaging the fruit.

 

Looking Ahead

As growers become more comfortable adapting to the new products and services at their disposal, operators will become increasingly dependent on autonomous power units and artificial intelligence.

While farm operators are excited by the gains in productivity technology can provide, many are frustrated by the multiple sources of information and the inability of different brands of equipment to interface with one another. Ultimately, operators want a single platform that ties together all aspects of their operation.

Equipment manufacturers are competing with one another to create and implement such a platform and be the first to bring the technology to market.

 

We Are Here For You

DPA Auctions uses the latest technology to provide a seamless and simple process to buying and selling heavy machinery in the agricultural, construction, and transportation industries. Millions of website visits per month and countless satisfied buyers and sellers attest to our success.

Do you have equipment you are considering selling? From listing your equipment to collecting your check, DPA Auctions has a team of professionals that are here to help you every step of the way. 

Contact us:
Email: customer.service@DPAauctions.com
Toll Free: 800-492-9090
Local: 402-721-4388

DPA Auctions strives to build strong relationships of trust with our clients. We are a family business and our goal is to treat our customers like family—with honesty, respect, and open communication. The way we see it, when our customers succeed, we succeed.

2020 presented some serious obstacles for us all. As much as we wish we could wave a magic wand and make everything all right, we know that in life, it is often the greatest challenges that bring us the greatest opportunities.

We strive to assist truckers as best as we can to achieve success.  It is our hope that the information we’ve gathered here will shed some light on our national pandemic’s impact on the trucking industry.

COVID-19

As of February 1, 2021, the CDC reported over 26,000,000 cases of COVID and nearly 440,000 COVID-related deaths in the US.

COVID’s impact is reinventing the way we live and conduct business. Some changes that we thought would be temporary are likely here to stay.

Employment

According to the Bureau of Labor Statistics, over 22 million jobs were lost at the beginning of the pandemic. Only around 12 million have been recovered thus far.

• 88,300 truck drivers lost their jobs in April 2020 alone. It was the largest loss since the bureau began tracking in 1990.
• The transportation sector gained nearly 47,000 jobs in December, marking the seventh consecutive monthly increase after four consecutive decreases.
• With 2020 numbers still preliminary, trucking employment was down 42,100 jobs for the year.

(It’s worth noting that these figures don’t reflect private fleet employment numbers, which fall in the private fleet’s main business category.  For example, Walmart and Amazon drivers are counted as retail employees.)

Truckers’ Contribution as Essential Workers

Overcoming early challenges, truckload carriers adapted quickly and kept America stocked with necessary goods. Truckers continue this vital service as the pandemic wears on.

Truckers are also playing an important role in the distribution process for the COVID vaccine.

In May 2020, the government announced “Operation Warp Speed,” a public-private partnership initiated to facilitate and accelerate the development, manufacturing, and distribution of COVID vaccines.

On December 13, 2020, a convoy of trucks loaded with the first doses of the COVID-19 vaccine departed from a Pfizer manufacturing plant in Michigan and headed to airports and distribution centers.

Yet, despite these significant contributions, truckers often remain the unsung heroes among essential workers. Our team at DPA Auctions recognizes your valiant efforts and commends each and every one of you for your dedication and service.

When will truckers be eligible to receive the vaccine?

The Centers for Disease Control assigned transportation workers to the third group (Category 1C) of COVID-19 vaccine deployment. The category includes:

• People aged 65—74 years 
• People aged 16—64 years with underlying medical conditions, which increase the risk of serious, life-threatening complications from COVID-19.
• Other essential workers, such as people who work in transportation and logistics, food service, housing construction and finance, information technology, communications, energy, law, media, public safety, and public health.

However, each individual state determines “who’s up” next. The states are also responsible for the distribution of the vaccine.

COVID’s Current Impact on Trucking

According to economists at MacKay & Co., COVID’s lasting effects on the economy — from more companies embracing remote work to more consumers embracing last-mile delivery — are not going away. The firm predicts that the first quarter of 2021 will not be as good as the rest of the year. But, the predicted strength at the end of 2021 could balance out the weakness from the start of the year, which will bring trucking and other economic indicators back up to 2019 levels. 

Slow-and-steady truck transportation employment is on the rebound for both local and long-distance sectors; and prices are continuing to firm because of the increased level of freight.

Convoy’s Annual Freight Insights Report

According to Convoy’s Annual Freight Insights Report, 2020’s freight data shows how the transportation industry is tied to the economy, society, and consumer behavior.

The data traced the domino effect of COVID-19. As people stayed home, they ordered more things online, so retail warehouses and distribution facilities had more shipments to fulfill, which then led to more trucks picking up and delivering these goods.

Convoy’s report also showed the difference of COVID’s impact between the goods economy and the services economy. Consider food spending trends—spending at restaurants and bars declined, reversing a decades-long upward trend, as grocery spending steeply rose after years of sluggishness. Restaurants and bars never fully recovered, even as parts of the country reopened throughout the year.

The goods economy, on the other hand, sharply rose from March onward. With people taking fewer vacations and eating out less, household savings rates soared and people shifted their spending to things instead of experiences.

Spending less on services and more on goods is a boon for the transportation and logistics industry.

Driver Impacts

• Due to the pandemic, fewer commercial driver’s licenses were issued to new drivers as social distancing limited training and testing in 2020.
• The pandemic pushed some drivers out of the industry.
• Trucking has found more labor competition in construction, manufacturing and last-mile delivery, which all have fewer regulations on workers. 

Be on the Lookout

Experts are watching five forward-looking indicators for the trucking economy:

1. Single-family building permits
2. Single-family housing starts
3. Gasoline prices
4. Diesel prices
5. Class 8 retail sales

Construction is a truck-intensive activity that has a large multiplier for the rest of the economy. For example, when you build a house, you furnish the house, and you move into the house – all of which cause Truckable Economic Activity (TEA).

According to the Census Bureau, housing permits issued continued on an upward trend in September (the latest data available), which marked the third straight month of 2020 where more housing permits were issued than the same month of 2019. Housing starts in June through September 2020 also outpaced the starts over the same period in 2019.

We are Here for You

As we mentioned, the greatest challenges often bring us the greatest opportunities. DPA Auctions makes owning your own truck an affordable option as you seek to advance your trucking career. We have a highly educated team of advisors available to assist you all along the way as you consider purchasing a truck at auction. Just give us a call, 800-492-9090. 

Check out our blog post: Benefits of Buying/Selling Used Trucks here. [insert hyperlink: www.DPAauctions.com]

For more information, call us today at 800-492-9090 or Contact us.

 

The process of purchasing a semi-truck can seem overwhelming. After all, you’re making a significant investment in your business/career.  There are many factors and choices to consider.

The first step is deciding whether to buy a new or used rig. Sure, buying a brand new model may come with sparkle and shine; but the benefits of a used truck can significantly outweigh the bells and whistles of a new one.

Here are some of the advantages of buying a used truck.

Lower Costs

Used semi-trucks are significantly cheaper than new ones. For comparison purposes, let’s take a quick look at the average price ranges of new trucks offered by major manufacturers. (Data is based on 2020 models.)

Freightliner Cascadia –  $100,000 to $160,000

Kenworth T680 – $127,000 – $159,000

Peterbilt 579 – $149,000 to $164,000

Tesla – $150,000 to $300,000

Volvo – $147,000 – $149,000

Comparatively, here’s a list of actual auction sales prices from DPA auctions held from December 15, 2020 through January 26, 2021:

2006 Freightliner Columbia Truck – $13,200

2010 IHC ProStar Truck – $8,600

2013 Peterbilt 337 – $25,000

2007 International 8600 Day Cab Truck – $22,400

2009 Kenworth T800 Day Cab – $23,100

2006 Peterbilt 379 Extended Hood Conventional Truck – $35,500

2012 Peterbilt 386 Truck – $23,200

2009 Peterbilt 387 – $18,800

2016 Mack Rawhide Truck – $28,500

2013 Kenworth T370 Daycab Truck – $25,000

2006 Peterbilt 379 Sleeper Truck – $26,000

2014 Peterbilt 386 Truck – $15,500

Granted, the age, mileage, and condition of trucks sold at auction vary from truck to truck, but the affordable prices merit much consideration.

For further comparison, all of our previous auction results, complete with full descriptions, can be found here.

Greater Selection

Buyers have a much better selection when buying used because there are usually more used semi-trucks for sale than new ones. Our online auction process puts you (the buyer) in the driver’s seat. You have everything you need right at your fingertips to choose the best truck for you. Plus, DPA Auctions offers an educated team of advisors to assist you all along the way.

When buying with us, you never deal with any high-pressure sales pitches for “extras” that you don’t need. We run our auctions with integrity and full-disclosure. Every item up for bid is carefully inspected, photographed and described in a manner that allows our customers to bid with confidence.

Avoids Depreciation

It’s no secret that when you buy a brand-new semi (or any vehicle, for that matter), it depreciates in value as soon as you drive it off the lot. The largest percentage of depreciated value occurs within the first year.

Your investment in a used truck is more solid because used models hold their value much greater than new ones. When the time comes to sell a used truck, if well maintained, it is often possible to sell it for around the price you paid for it. 

Lower Operating Costs

The operating costs of used semi-trucks are generally much lower than the costs associated with new trucks.

Insurance rates for used trucks are cheaper. The high price tag on new trucks means higher insurance premiums because the more the truck is worth, the more you’ll have to pay for coverage.

Buying used also saves you money on sales tax and registration fees. The fees vary state by state, but generally registration costs are lower for used trucks. Also, some states do not charge sales tax on used vehicles.

Our prerogative at DPA Auctions is to provide a seamless buying experience. Our intricate data processing and telecommunication system finds and unites buyers with compatible sellers. We handle it all—accurate listings, money transfer, title transfer and lien searches. We offer convenient and efficient delivery and a very secure payment process. We do this through a customer-first methodology. Our customers are our number one priority.

For more information, call us today at 800-492-9090 or Contact us.