Preliminary used Class 8 truck volumes for same dealer sales fell 14 percent month-over-month in May, the second consecutive sequential drop, according to the latest preliminary release of the State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research.
Additionally, the report indicates longer-term comparisons yielded a 22 percent decline compared with May 2018, as well as a year-to-date drop of 16 percent.
Other data released in ACT’s preliminary report includes year-over-year comparisons for May 2019, which showed that average prices rose 5 percent, while average miles shed 1 percent and average age increased 7 percent.
“A spring slowdown is not uncommon and sales generally increase a bit in the summer, but with the headwinds in the freight market, that is unlikely,” says Steve Tam, vice president, ACT Research.
“Those who watch the industry closely have been expecting the strong pricing environment to soften this year and, based on preliminary May data, it appears as though that transition may have started. In the context of lower unit sales and rising inventory levels, the slowing price appreciation is a strong indication that demand for used trucks is waning. Given a similar story in the freight market, the development makes sense.”
ACT’s Classes 3-8 Used Truck Report 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.
