Non-Domiciled CDL Crackdown Strains Truck Dealers and Lenders Article
As seen in Equipment Finance News
By: Quinn Conoghue
Recent federal action tightening rules around non-domiciled commercial driver’s licenses and English proficiency requirements is creating significant strain across the trucking and equipment finance industries. Dealers and lenders alike are reporting weakening demand, particularly in the used truck market, as regulatory changes remove thousands of drivers from active service.
Industry data shows a sharp shift in sentiment over a short period of time. A majority of truck dealers now report softer used truck demand compared to just a few months earlier. This decline is closely tied to changes implemented by the Federal Motor Carrier Safety Administration, which issued an emergency ruling in late September restricting eligibility for non-domiciled CDLs for many immigration classifications, including refugees, asylum seekers, temporary protected status holders, students, and dependents.
The impact has been immediate and measurable. In California alone, tens of thousands of non-domiciled CDLs have been revoked, forcing drivers off the road and reducing the pool of qualified operators. Dealers operating in regions with higher concentrations of immigrant drivers have been particularly affected, reporting fewer qualified buyers and slower truck turnover.
CAG Truck Capital’s Perspective
Chris Grivas, president of CAG Truck Capital, noted that these regulatory changes are beginning to ripple through the financing side of the industry. As drivers lose the ability to legally operate, some borrowers are forced out of business entirely, increasing financial strain and, in some cases, leading to repossessions.
Grivas also pointed out that lenders connected to CDL training programs face added risk. Thousands of training providers have lost accreditation, further shrinking the pipeline of new drivers entering the workforce. This creates challenges not only for fleets and dealers, but also for finance companies that support equipment purchases tied to driver availability.
The situation highlights the interconnected nature of driver regulation, truck sales, and equipment financing. As policy changes continue to evolve, lenders and dealers must closely monitor regulatory developments and adjust their strategies to manage risk while continuing to support qualified owner operators.
