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 24% lower month-over-month.
Longer term, volumes were down 40% year over year. Average prices were down 1% compared to March, but 75% more expensive than in April of 2021.
Average miles and age were up slightly from March, at plus 3% and plus 4%, respectively, with miles up 6% year over year and age 7% higher than last April.
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 took a bit of a tumble in April. While normal seasonality predicted an 8% decline, lumpy new truck sales and the lack of used truck inventory are the more likely culprits in April’s slowing,” said Steve Tam, vice president at ACT Research.
He continued, “Waning April new truck sales portend more weakness ahead in the secondary market, though March’s uptick has yet to make its way through the inventory maze.” Tam added, “The April deficit marks the tenth straight month of shrinking year-over-year sales, which have been hamstrung by the curtailed flow of units into used truck inventory. A peek ahead at near-term expectations suggests sales are usually below average in May, then return to normal in June and July before picking up in August.”
Asked about the supply-chain impact on the US used truck market, Tam commented, “While the OEMs aspire to higher new truck production and sales, which would presumably benefit the used truck market, the relief they seek on the supply-chain front has proven elusive.”
He concluded by discussing demand, saying, “Inflation persists in taking its toll on consumer confidence and spending. While the spot freight markets have borne the brunt of the initial slowing, contract markets are not expected to escape unscathed. Collectively, lower demand for trucks at the same time capacity additions are still occurring are having the predicted and understandable effect of driving prices for both freight hauling and used trucks lower.”
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.