Used Class 8 volumes were 12 percent lower month-over-month, but significantly higher year-over-year and year-to-date against easier COVID-impacted comparisons in 2020, according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research.
Average prices were 2 percent higher compared to April and 43 percent more expensive than in May of 2020, while average miles were 6 percent higher month over month, average age was 1 percent older month to month, and both dropped 2 percent compared to May of 2020.
“Used Class 8 same dealer sales volumes stayed in negative territory in May. Historically, sales usually slow a few percentage points from April to May, so the 12 percent decline was bigger than expected,” says Steve Tam, ACT vice president.
“Some in the industry are starting to question whether continually rising prices are beginning to test the limits of borrowers, and perhaps even some lenders. Unless transactions are requiring larger down payments and/or higher monthly payments, there is a growing possibility that some buyers may be upside down on their loans when truck prices start to come back down. Regardless, demand remains strong, thanks to underlying freight and driver dynamics,” Tam says.
Looking at the different sales channels for used Class 8 vehicles, Tam says, “Channel results were once again mixed, with all three segments in decline in the near term and strongly positive on year-over-year basis. Sequential softness came from the retail market, which also bolstered broader year-over-year and year-to-date gains.”
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.