Preliminary used Class 8 volumes dropped 10 percent month-over-month in October but are 10 percent higher year-to-date compared with the first 10 months of 2019, according to the latest preliminary release of the State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research. The report indicates, compared with October of 2019, volumes are down 12 percent.
Also included in the report, month-over-month comparisons for October 2020, which showed that average prices increased 4 percent, while average miles rose 1 percent and average age gained 2 percent, compared to September. Year-to-date, average price, miles and age were all lower, down 11 percent, 3 percent and 7 percent, respectively, compared with the first 10 months of 2019.
“How the year ultimately plays out will depend heavily on the demand for equipment, particularly in the spot freight markets, where rates have yet to show any signs of abating from recent record highs. That said, one of the most frequent questions we are being asked today is why truckers are buying trucks when there are still tens of thousands of unemployed truck drivers, whose rigs are sitting idle,” says ACT Vice President Steve Tam.
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“While seemingly illogical at a macro level, each buyer likely has his or her own reasons for buying and is probably not looking at the big picture of balancing work and capacity,” Tam says. “Buyers are probably unaware that they are individually contributing to a faster imbalance of too many trucks and not enough freight, which will hasten the next peak and send the industry down the backslope of the next cycle.”
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.