COLUMBUS, Ind. – According to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research, used Class 8 retail volumes (same dealer sales) were 1% higher month-over-month. Longer term, volumes dropped 44% y/y and were 34% lower ytd.
Average price and miles were down 6% and 1%, respectively, compared to May, but average age rose 5% m/m.
Longer term, average price was higher y/y and ytd, as were average miles and age, with price up 74% ytd June, average miles 3% higher compared to the first six months of 2021, and average age 6% older for the same time period.
The report from ACT provides data on the average selling price, miles, and age based on a sample of industry data. In addition, the report provides the average selling price for top-selling Class 8 models for each of the major truck OEMs – Freightliner (Daimler); Kenworth and Peterbilt (Paccar); International (Navistar); and Volvo and Mack (Volvo). This report is utilized by those throughout the industry, including commercial vehicle dealers, to gain a better understanding of the used truck market, especially as it relates to changes in near-term performance.
“Same dealer retail sales of used Class 8 trucks held almost steady in June,” Steve Tam, vice president at ACT Research, said. “The gain is smaller than expected, at least as far as typical seasonality is concerned. Normally, volumes are about 5% larger in June, relative to May. In the grand scheme, June sales are very average, meaning almost no seasonal adjustment is necessary to account for buying habits and/or patterns.”
Tam said seasonality is not the over-arching driver of volumes in the current market.
“The picture is much more dependent upon what is happening in the economy, freight markets, and with new truck production and sales,” Tam said. “Clearly, there are concerns in the economy that have direct implications on the used truck market. As the economy and freight begin to cool from their torrid pace over the past two years, it is logical and expected to see demand for commercial vehicles, both new and used, slow. However, demand is not all about what is happening today. As new and used truck buyers were denied access to equipment because of the supply-chain crunch, they were forced to extend their trade cycles and age their fleets. While this is a short-term tactic, it is a situation that needs to be rectified. It is that replacement of older trucks that will sustain the industry through the trough of the current cycle.”
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.