How Commercial Trucks Depreciate: Used Truck

Buying a commercial truck isn’t just about the upfront price — it’s about how well that investment holds value over time. Depreciation plays a critical role in the cost of ownership, yet many buyers underestimate how much value a truck can lose — or retain — depending on the model, age, and how it’s used.

In this guide, we’ll break down how truck depreciation works in Canada, when and what to buy for long-term value, and how used truck owners can protect their investment.

What Is Depreciation?

Depreciation is the gradual decrease in a truck’s value over time. It’s influenced by:

• Age and mileage
• Maintenance history
• Brand reputation
• Supply and demand
• Fuel efficiency and technology

In most cases, a new Class 8 truck can lose 20–30% of its value in the first year alone — and up to 60% after five years. But not all trucks depreciate at the same rate.

Why Depreciation Matters for Buyers and Fleets

Whether you’re an owner-operator or fleet manager, understanding depreciation can help you:

• Choose models that retain value longer
• Time your purchases or sales for maximum ROI
• Save on insurance and tax costs tied to truck value
• Maximize resale when upgrading equipment

Depreciation isn’t just an accounting term — it’s a real-world cost that affects cash flow and asset strategy.

Depreciation Timeline: What to Expect

Let’s take a high-level look at how a typical long-haul semi might depreciate:

• Year 0 (New): MSRP = $220,000
• Year 1: -25% = $165,000
• Year 3: -45% = $121,000
• Year 5: -60% = $88,000
• Year 10+: Often worth under $40,000 depending on condition and mileage

Used trucks in the 3–7 year range often offer the best value-to-price ratio — low enough depreciation to save money, but new enough to avoid costly repairs.

Best Retaining Truck Brands in Canada

Based on real resale data from Canadian marketplaces and fleet buyers, the following Class 8 truck brands tend to hold their value better:

• Kenworth – Especially the T680 and T880, known for build quality and resale strength
• Freightliner – The Cascadia, in particular, benefits from wide parts availability
• Volvo – Offers strong depreciation control due to efficiency and comfort
• Peterbilt – Long-standing brand loyalty helps resale, especially for day cab units

To browse used models from these brands, visit Mehmi’s truck inventory.

When Is the Best Time to Buy Used?

Timing matters. Here are the key sweet spots:

• 2–5 Years Old: Trucks have taken the steepest depreciation hit but still offer reliability
• 400,000–700,000 KM Range: These trucks are often ready for a second working life
• End of Lease or Fleet Turnover: Often come with full maintenance records and discounted pricing

Mehmi Financial specializes in equipment loans and leases for used Class 8 trucks, trailers, and specialty vehicles.

How to Slow Down Depreciation on Your Used Truck

If you’re already an owner, here are key ways to protect your truck’s value:

Maintain Service Records

Buyers will pay more for trucks with documented oil changes, brake jobs, and major repairs. Use a digital log or keep physical receipts.

Invest in Cosmetic Upkeep

Repainting a hood, fixing dents, or replacing mirrors can drastically improve resale appeal. Regular detailing also reduces long-term rust damage.

Install Key Upgrades

Used trucks with dash cams, GPS systems, and LED lighting can command higher resale values due to added safety and convenience.

Consider a Sales-Leaseback

Free up working capital by selling your truck to Mehmi and leasing it back — especially useful for asset-heavy businesses facing temporary cash flow challenges.

The Tax Angle: Depreciation as a Write-Off

If you're a sole proprietor or incorporated business, the Canada Revenue Agency allows depreciation of your truck as a Capital Cost Allowance (CCA).

This can reduce your taxable income — another reason why understanding truck depreciation is financially strategic.

Real-World Case Study

A logistics operator in Ontario purchased a 3-year-old Kenworth T680 for $115,000, down from its $200,000 new MSRP. The truck had 500,000 KM and came with full maintenance logs. After 3 years of use, he sold it for $77,000 — a depreciation loss of just $38,000.

Had he bought new, his 3-year loss would have been over $100,000. By timing his purchase smartly and maintaining the truck, he avoided steep upfront losses and maximized resale value.

Related Services to Explore

• Truck Repair Financing – Offset major engine or transmission repairs
• Refinancing & Sales-Leaseback – Convert equity into working capital
• Conditional Sales Contracts – Own your truck over time while preserving cash flow
• Trailer Financing – Finance trailers that hold long-term value
• Transportation Expertise – Learn which trucks retain value in different duty classes

Frequently Asked Questions

How fast do commercial trucks depreciate?
New Class 8 trucks can lose up to 30% in the first year and 50–60% by year five. Depreciation slows significantly after the third year.

What factors help a truck hold value longer?
Brand, mileage, maintenance history, fuel economy, and model popularity all influence resale.

Is it smarter to buy a used truck than new?
In most cases, yes — especially if you buy 2–5 years old and maintain it well. You'll avoid the steepest depreciation drop.

Do upgrades help resale value?
Yes. Items like telematics, LED lighting, or in-cab comforts increase buyer interest and can boost price.

What’s a good mileage range to buy used?
400,000–700,000 KM is a sweet spot — the truck still has plenty of life, but has already depreciated.

Can I finance a truck even if it’s older?
Yes. Mehmi offers used truck loans for qualified units, even if they’re private sales or outside traditional dealer networks.

If you're ready to invest in a used truck that holds its value, start by checking our in-stock inventory or speak to a financing advisor to compare options. A well-timed, well-maintained purchase could save you tens of thousands over time — and we’re here to help make that happen.

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