COLUMBUS, Ind. — According to the latest State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research, used Class 8 retail volumes (same dealer sales) declined 23% month-over-month in April. Average mileage declined by 1%, with average price down 8% and age up 3%. Longer term, average volumes, price, and miles were lower, with age flat year-over-ear.
“Same dealer Class 8 retail truck sales slowed in April, pulling back 23% from March. While sales normally decelerate in April, the decrease was greater than the expected 8-10%,” said Steve Tam, vice president at ACT Research. “With inventory on the rise, and more importantly, not a limiting factor for sales, the logical conclusion is that demand is softening. This is a plausible explanation, especially given waning economic and freight conditions.”
Examining each of the channels individually will shed light on how other indicators are faring, Tam noted.
“Near-term channel results reveal the usual pullback from the quarter-end spike in auction volumes,” he said. “After spiking 93% month-over-month in March, auction activity shrank 45% month-over-month in April. Wholesale transactions improved, jumping 72% month-over-month. Combined, the total market fell 28% m/m in April.”
As the year progresses, the year-to-date scenario also continues to diverge from last year, according to ACT.
“The overall market extended its lead to 5% year-to-date,” Tam said. “Despite the early lead, we believe that truckers’ appetites for used equipment will be curbed as freight volumes continue to contract. Our best estimate suggests that inventory continues to increase, supporting buyers working to refresh their used truck fleets.”
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.