Preliminary used Class 8 volumes dropped 3 percent month-over-month and 19 percent year over year in July. Through the first seven months of the year, activity is 13 percent higher compared to the same period a year ago, according to ACT Research’s preliminary release of the State of the Industry: U.S. Classes 3-8 Used Trucks published.
Other data released in ACT’s preliminary report includes month-over-month comparisons for July 2021, which showed that average prices dropped 3 percent, as average miles and age rose 4 percent and 3 percent, respectively, compared to June.
Compared to July of 2020, average price was 45 percent higher, with average miles and age each up 1 percent. On a year-to-date basis, average price is 31 percent above its year-ago level for the first seven months of 2020, with average miles and age each down 1 percent on a year-to-date basis.
“Preliminary same dealer sales continued to ebb lower in July, slowing 3 percent from June and 19 percent lower compared to July 2020. Typically, there is not much difference in activity between June and July,” says ACT Vice President Steve Tam.
“The bigger issue continues to be the narrative surrounding the trickle of inventory coming into the secondary market from the new truck side of the industry. Unable to take delivery of new trucks when originally planned, new truck buyers are hanging on to units they had planned to trade,” Tam says.
“And of course, those new trucks have had their production hampered by pervasive part shortages. Owing to the scarcity, particularly in a strong demand environment, used truck prices continued to increase in July. Looking ahead, pricing will most likely peak around mid-year 2022, based on expected economic/freight activity and forecast supply and demand. It is important to keep in mind that when the market inevitably slows, it will be doing so from a record level,” he says.
ACT’s Class 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.