Truck repos down in 2008, but still high
ROSLYN HEIGHTS, N.Y. — Although 2008 was arguably the worst economic year in nearly three decades, there were actually fewer truck repossessions in the U.S. than in 2007, according to Nassau Asset Management’s NasTrac quarterly index. The 2008 totals, however, still represented a 50 percent increase from 2006 totals.
The figures, culled from the company’s activity reports for both repossessions and orderly liquidations, show truck repossessions for trucks and tractor trailers declined by 25 percent in 2008 as compared to the previous year.
The initial glut of trucks in the marketplace following the change in engines in 2006-2007 has now been absorbed. However, the slow economy means there is still a high level of inventory, which may yet increase due to difficult credit slowing down the entire food chain, the firm says.
"The credit market remains sluggish, and lenders are receiving mixed signals," said Ed Castagna, president of Nassau Asset Management. "The Federal Reserve weekly reports show an increase in commercial and industrial loans, but those loans are being used by large companies to meet their financing needs or to have cash on hand for the future. They are not being used to generate new business activity in the leasing sector and elsewhere."
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