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Charles Smith, Regional Business Development and Marketing Manager at Mission Financial Services, was recently featured in Transport Topics. The article highlighted the significant uptick in used Class 8 truck sales during April 2025 and shed light on a very important insight: the importance of building relationships with customers.

If you haven’t read that article, don’t despair. We’ve explored the industry context behind that article, Charles’ insights on market dynamics, and the Mission Financial Services approach to market challenges, right here.

Industry Context: April 2025 Used Truck Sales Surge

For industry context, let’s look at the used Class 8 truck market and examine the pricing and mileage trends that Transport Topics discussed.

Market Overview

First, it’s been a good time for used Class 8 truck sales. Used truck sales increased for a second month in a row in April 2025. The April figures showed a 3.5% year-over-year gain with a total of 23,600 units sold, and a 4.4% month-to-month jump, too!

This consistent growth demonstrates sustained demand despite broader economic uncertainties. It shows that trucking businesses are investing in equipment despite challenging conditions. It also reflects the essential resilience of commercial transportation.

Pricing and Mileage Trends

The average retail sale price decreased by 1.9% year-over-year to $58,132. Another interesting trend is the reduction in average mileage these used trucks have. It decreased by 4.5% to 400,000 from 419,000, a year ago.

This tells us that newer inventory is entering the used market, providing buyers access to equipment with a longer remaining useful life.

That’s good news for small trucking fleets and owner-operators with budget constraints. It means that buying a used Class 8 truck is more affordable. And lower-mileage vehicles also typically qualify for better loan terms and longer repayment periods.

Charles Smith’s Insights on Market Dynamics

It’s time to turn our attention to the insights Charles Smith shared with Transport Topics.

Navigating Economic Uncertainty

Smith didn’t shy away from the reality of current market conditions. “Used truck sales are, I’m not going to say down, but they’re stagnant right now.”, Smith observed.

He voiced what those in the truck sales industry have been thinking. Potential buyers have struggled with economic uncertainty. Many businesses adopt the wait-and-see approach rather than buying another truck, even when they desperately need to.

This reflects broader economic concerns that impact capital allocation decisions across the trucking industry. The stagnant market conditions he described align with feedback we receive from customers, especially owner-operators, concerned about uncertain future freight demand and operating costs.

Emphasis on Relationship Building

Despite widespread economic challenges, we at Mission Financial Services have maintained growth. And the reason? Charles’ words sum it up best: “It’s about building relationships and, I think, that was a big part of the growth for us.”

He credited the company’s recent sales to working even harder to reach and engage potential buyers. And he explained that building relationships with customers and dealership partners was central to our success.

Mission Financial Services’ Approach to Market Challenges

Mission Financial Services is no stranger to economic difficulty. But we have learned to overcome the obstacles through proactive engagement and collaborative partnerships.

Proactive Engagement

At Mission Financial Services, we take a proactive approach to sales. To quote Charles again: “We’re out pounding the pavement, knocking on doors, still trying to get the ones that are looking to purchase.”

This proactive engagement strategy reflects a crucial truth: successful lending requires ongoing market presence and customer education. Rather than simply waiting for applications to arrive, we actively engage with trucking businesses to understand their needs and provide the best solutions.

Collaborative Partnerships

As Charles emphasized in the interview, dealership partnerships play a critical role in facilitating successful transactions during challenging market conditions. And these are the relationships that enable Mission Financial Services to provide seamless financing solutions.

We recognize that strong dealership partnerships create value for all stakeholders involved in commercial trucking transactions.

Dealers benefit from reliable financing options for their customers, while buyers gain access to streamlined application processes and competitive terms. Our collaborative approach ensures that all financing considerations support, rather than complicate, equipment purchases.

Looking Ahead: Anticipating Market Trends

Several factors will influence used truck sales throughout the remainder of 2025. Freight demand patterns, regulatory changes, and broader economic conditions will all influence the decision to purchase equipment.

But we cannot deny that the financial benefits of used trucks extend beyond the initial purchase. They offer lower depreciation rates, reduced insurance premiums, and accessible financing options. And it’s factors like these that help smaller trucking businesses stay in business and remain profitable.

Therefore, it’s no surprise that the global used truck market is predicted to grow and reach 64.66 billion USD by 2030.

We anticipate that successful trucking businesses will focus on strategic equipment investments that support long-term operational efficiency. This approach requires careful evaluation of financing options and partnership with lenders who understand industry dynamics.

Our Promise to You

Here at Mission Financial Services, we’re still doing what we’ve always done, helping our customers get the financing they need.

However, we understand that small trucking businesses are hesitant to expand their fleet or undertake repairs to their existing fleet at this time. That’s why we’re adapting our programs to support customer success in evolving market conditions.

We guarantee you’ll still enjoy easy access to financial solutions and competitive loan terms. But you’ll also enjoy the service and support you deserve, with solutions that fit your finances regardless of market fluctuations.

Conclusion

We’re very proud that one of our own, Charles Smith, was featured in Transport Topics. He deserves the recognition, and we appreciate the publication’s faith and trust in our expertise. But we’re even more proud of the countless success stories we’ve helped to build with our financing solutions.

At Mission Financial Services, we remain committed to supporting trucking businesses and helping them achieve their business objectives. And we look forward to continued engagement with the trucking community, well into the future.

Contact us today for a tailored financing solution to drive your business’s growth and prosperity.

Asset-backed securities (ABS) are a financial investment backed by a pool of assets, such as loans. Such loans offer benefits to investors, lenders, and borrowers alike. But they are still vulnerable to losses from loan delinquency. And in May 2025, 60-plus day delinquencies for ABS equipment loans spiked.

What is behind these recent ABS equipment loan delinquencies, and what are the implications? We examined the subject of ABS loan delinquencies, their most common root causes, and how to mitigate the risks.

The Current Landscape of Equipment Loan Delinquencies

Recent data from Kroll Bond Rating Agency’s (KBRA) Equipment Loan & Lease Index reveals that 60-plus-day delinquencies in equipment loan and lease ABS surged by 34 basis points (bps) month-over-month in May 2025.

Small to medium-ticket delinquencies jumped 22 bps month-over-month, while large-ticket delinquencies increased 41 bps. Year-over-year, there was an increase of 1,8% in these delinquencies in the current period. This indicates that stress has been building within equipment financing portfolios for some time.

According to Joanne DeSimone, managing director of commercial ABS at KBRA, the increase, specifically of large-ticket delinquencies, “has been driven over the past two years by the stress in transportation assets, the stress in trucking”.

Factors Driving the Increase in Delinquencies in Asset-Backed Securities

Let’s consider the factors driving these delinquencies.

A Symptom of a Larger Problem

Delinquency rates have been increasing across various types of loans for some time. Auto loan delinquency rates, especially, have been increasing across credit scores and income levels. Therefore, we can see that Americans have been struggling to keep up-to-date with loan payments across the board.

Inflation

Rising inflation is often a factor in loan delinquency. Inflation affects the cost of loan repayments. Even a modest rise increases the cost of goods. Even a modest rise increases the cost of goods. And that can make it more difficult to keep up with loan repayments as well.

Equipment loans are crucial for enabling trucking companies to remain operational. But if they’re paying more for essential goods and services, business owners may have to allocate more resources toward basic operations, compromising their ability to service debt obligations.

Low Business Confidence Due to Economic Uncertainty

When businesses feel confident about their future potential, they are more likely to do what it takes to grow their operations. That includes repaying loans, because they know that they will be able to afford it. However, business confidence, especially in smaller businesses, has been weakening.

And the main reason behind that is the economic turbulence that has been plaguing the US. Inflation, monetary policy, freight slowdown, and trade tariff uncertainty have all impacted the economy. This can make small fleet owners fearful of the future and less likely to prioritize loan repayments.

Industry-Specific Factors

Other factors influencing loan delinquency amongst trucking companies are more industry-specific.

The North American trucking industry in 2025 is grappling with various issues, including inflationary pressures from tariffs, trade policy shifts, and market realignments. Freight volumes also remain conservative.

Fuel costs, maintenance costs, labor expenses, supply chain disruptions, and trucking market volatility create a squeeze on cash flow, pushing loan payments to lower priority levels.

And the FMCSA’s proposed regulatory changes add further stress on smaller fleets.

Implications for Stakeholders in Equipment Finance

What are the implications of ABS equipment loan delinquencies for stakeholders?

Lenders

The spike in ABS equipment loan delinquencies creates ripple effects throughout the financing ecosystem. Lenders rethink their risk management strategies and underwriting criteria. Investors worry about returns and portfolio performance.

Investors

The rise in ABS equipment loan delinquencies and the uncertainty they cause can lead to reduced appetite for new ABS issuances. This can potentially constrain the flow of capital into loan and lease pools.

Borrowers

Trucking businesses and other equipment-dependent operations that rely exclusively on traditional bank financing or ABS loans may find themselves vulnerable. This signals the importance of diversifying financing sources and maintaining strong relationships with specialized lenders.

Equipment Manufacturers

The broader implications extend to the equipment manufacturers and dealers.

Equipment loan and lease pools have shown resilience despite economic challenges. However, as delinquencies rise and lenders become more selective, commercial truck manufacturers may need to explore alternative financing partnerships or develop solid internal financing capabilities.

Mitigation Strategies

Successful navigation of the current environment requires proactive approaches from manufacturers, lenders, investors, and borrowers.

For Manufacturers: Seek Industry-Leader Partnerships

Manufacturers of other trucking equipment can increase their sales figures by partnering with trusted lenders. But they should seek out financing partners that are dedicated to the industry, like Mission Financial Services.

For Lenders: Develop More Stringent Evaluation Methods

Current evaluation methods may not adequately capture emerging risks in the equipment financing space. Lenders should start implementing more stringent qualification requirements and potentially adjust pricing to reflect higher risk levels.

For Investors: Focus on Risk Assessment and Portfolio Diversification

Investment is always risky, even with traditionally resilient asset-backed securities. Portfolio diversification can reduce the risks associated with a truck-centric only portfolio.

The constant default rate (CDR) helps investors understand the potential for losses in ABS loans. Investors should pay more attention to risk management based on the CDR.

For Borrowers:

Trucking companies can strengthen their financing positions by maintaining detailed financial records and prioritizing financial management. They should explore specialized financing options designed for their industry’s unique characteristics, such as Mission Financial Services.

The Outlook

The outlook for equipment financing markets depends largely on broader economic challenges and policy responses.

When inflationary pressures moderate and interest rates stabilize, we may see improvement in delinquency rates. However, businesses should prepare for continued volatility and maintain conservative financial management practices.

Moving forward, we expect the equipment financing landscape to evolve as lenders adapt their strategies and borrowers adjust their approaches to capital management. Success will depend on flexibility, preparation, and correctly aligning financing with overall performance and long-term business objectives.

Conclusion

The spike in ABS equipment loan delinquencies during May 2025 demands attention from all equipment financing ecosystem stakeholders.

But most importantly, trucking businesses must practice stronger financial management and find lenders who understand industry-specific challenges. The current environment, while challenging, also creates opportunities for businesses that can demonstrate strong operational performance.

Trucking businesses taking proactive steps to address financing challenges will be better positioned to weather current market conditions. And Mission Financial Services is ready to meet their needs with favorable terms despite broader market constraints.

Contact us for more information on financing options designed to meet the needs of the trucking industry.

Running a successful trucking business requires careful financial planning, and understanding commercial truck registration costs plays a crucial role in your budgeting process.

We know that navigating the world of state fees, weight classifications, and regulatory requirements can feel overwhelming for small trucking businesses and owner-operators. So we created this guide that breaks down everything you need to know about cost factors for commercial truck license plates.

Factors Influencing Registration and Commercial Truck License Plate Cost

How much does it cost to register a semi-truck, and how much do commercial truck license plates cost in general? That question does not have a simple answer because commercial truck registration costs can vary significantly based on several key factors.

Understanding these variables helps you anticipate costs and budget accordingly for your trucking operations.

Vehicle Weight

Semi-truck registration is often much more expensive than regular motor vehicle registration. The main reason? Your truck’s weight classification is the primary factor determining the cost of your registration and commercial truck license plates in most states.

A semi-truck can weigh anywhere from 10,000 pounds without the trailer to 35,000 pounds with the trailer added. That’s why the various states typically use one of these weight measurements:

• Gross Combined Weight Rating (GCWR): The maximum loaded weight of a semi-tractor and trailer combined.
• Gross Vehicle Weight Rating (GVWR): The maximum loaded weight of any single vehicle, as specified by the manufacturer.
• Unladen weight: The weight of your empty tractor and trailer.

Many states structure their fees on a sliding scale, where heavier vehicles pay more than lighter ones.

Value/Type

Some states use a formula to calculate the cost of your semi-truck registration based on the truck’s value.

The type of commercial vehicle also influences costs. Tractors typically carry higher registration fees than trailers, and specialized vehicles like hazmat transporters may face additional charges. You’ll also need a DOT number if you plan to drive passengers, transport hazardous materials, or deliver interstate freight.

Location & State-Specific Registration Fees

Your business location determines which state’s fee structure applies to your primary registration. Each state develops its fee structure based on local transportation and revenue requirements. Some states favor flat-rate systems, while others implement tiered pricing.

Western states may be able to charge higher fees due to increased infrastructure demands from heavy freight traffic. Mountain states may add surcharges for vehicles operating in challenging terrain conditions, and agricultural states sometimes offer reduced rates for farm-related commercial vehicles.

Local/Interstate Operations

The cost of the license plate varies depending on whether it’s for local or interstate use.

If you operate your trucking business across national borders or in multiple states, you must apply for apportioned plates through the International Registration Plan (IRP). This distributes fees across participating jurisdictions based on your mileage.

If you operate locally, in your city, or across your state, you only need a local plate.

Additional Commercial Motor Vehicle Fees and Surcharges

Beyond base registration fees, you’ll encounter various additional charges that can significantly impact your total costs:

• Many states impose additional taxes to fund highway maintenance and construction.
• Annual or biennial safety inspections may be required, adding $50-150 to your costs.
• You could face processing charges for paperwork and documentation.
• Some states charge an extra county fee or additional fees for emissions testing or environmental compliance.
• Separate charges can apply for physical plates and title documentation.

State-Specific Commercial Vehicle Registration Cost Examples

Registration costs vary dramatically across the United States. You could pay anywhere from a few hundred dollars to over two thousand. The figures vary based on specific vehicle characteristics, local jurisdictions, and current fee schedules.

But here are some examples:

• If you’re based in Alabama, you may pay up to $890, depending on the type of truck or truck tractor and its gross weight. Gross vehicle weight also influences registration costs in Alaska, Arizona, Florida, Indiana, Louisiana, Michigan, Missouri, and Nevada.
• In Arkansas, you’ll pay $21.50, plus an additional charge per 1,000 pounds. Costs are scaled by vehicle weight in Georgia, Kentucky, New Jersey, and Vermont, too.
• In California, registration and licensing are not your only expenses to worry about. Environmental regulatory fees apply. The Golden State has a Clean Truck Check compliance fee of $30, which will be raised to $32.13 in January 2026.
• Situated in Delaware, Iowa, Maryland, Minnesota, Nebraska, or New York? Your registration costs are calculated based on your truck’s weight classification. The same goes for Oregon, South Dakota, and Washington.
• In Idaho, the costs depend on weight and vehicle type. But if you’re registering your truck in Illinois, the costs are determined by the vehicle’s weight and intended use.
• Meanwhile, in Colorado, what you pay is based on the year of manufacture of the vehicle and the original taxable value.

Staying Compliant with Registration Requirements

The owner, and not the driver, is responsible for registration and licensing costs unless you are a solo owner-operator and are therefore both the owner and driver. However, someone with permission to represent the owner may also submit registration documents and obtain license plates.

Maintaining proper registration compliance protects your business from costly penalties and operational disruptions. Registration periods and the required fees are provided on the registration form or renewal form. We recommend developing a systematic approach to managing your registration obligations.

Regular Renewal of Registrations and License Plates

Most states require an annual fee, though some offer multi-year options. Mark your calendar 60-90 days before expiration dates to ensure timely renewal and avoid late fees. Set up automatic reminders for each vehicle in your fleet so that you always pay on time and avoid penalties.

Many states offer online renewal systems that streamline the process, with digital copies on file. But keep physical copies of all registration documents in each vehicle, too.

Keeping Current with Regulatory Changes

State regulations and fee structures change, and often it’s with little advance notice. Subscribe to your state’s motor vehicle department newsletters and notifications to stay informed about upcoming changes.

Also, join trucking associations and industry groups that monitor regulatory developments. These organizations often provide early warnings about fee increases or new requirements that could affect your truck drivers and business operations.

Maintain relationships with compliance professionals who specialize in commercial vehicle regulations. Their expertise can help you navigate complex changes and ensure your business remains compliant.

Review your registration status quarterly to identify any discrepancies or missing documentation. Address issues promptly to avoid penalties.

Budgeting Tips for Your Commercial Motor Vehicle Registration Costs

Treat registration costs as a fixed operating expense in your annual budget. Calculate your total registration expenses for the year and set aside funds monthly to cover these costs.

Consider the following strategies to manage registration expenses:

• Budget 5-10% above current fees to account for potential rate hikes.
• Explore multi-year options: Some states offer discounts for multi-year registrations.
• Maintain accurate records, as proper documentation prevents costly re-registration fees.
• Consider fleet consolidation: By reducing vehicle count, you can significantly lower total registration costs.
• Stagger the renewal dates if you operate multiple vehicles. This distributes costs throughout the year, preventing large lump-sum payments that strain your cash flow.

Conclusion

Understanding registration and commercial truck license plate costs will help you budget effectively and maximize profitability. State licensing and registration fees vary widely based on vehicle type and weight, location, and business operations.

Research state-specific requirements for your situation.

Need help keeping to the budget for your new commercial truck purchase, too? It starts with affordable, flexible financing through Mission Financial Services. We offer a range of truck loans that cover purchasing new or used trucks as well as paying for repairs.

Contact us for budget-friendly, user-friendly loans, tailored to the needs of the trucking industry.