Used Class 8 retail volumes of same dealer sales were 1 percent higher month-over-month, according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research.
Longer term, volumes dropped 44 percent year over year and were 34 percent lower year to date. Average price and miles were down 6 percent and 1 percent, respectively, compared with May, but average age rose 5 percent m/m.
Longer term, average price was higher y/y and ytd, as were average miles and age, with price up 74 percent ytd June, average miles 3 percent higher compared with the first six months of 2021, and average age 6 percent older for the same time period.
“Same dealer retail sales of used Class 8 trucks held almost steady in June. The gain is smaller than expected, at least as far as typical seasonality is concerned. Normally, volumes are about 5 percent larger in June, relative to May. In the grand scheme, June sales are very average, meaning almost no seasonal adjustment is necessary to account for buying habits and/or patterns,” says Steve Tam, ACT vice president.
“However, seasonality is not the over-arching driver of volumes in the current market. The picture is much more dependent upon what is happening in the economy, freight markets and with new truck production and sales. Clearly, there are concerns in the economy that have direct implications on the used truck market. As the economy and freight begin to cool from their torrid pace over the past two years, it is logical and expected to see demand for commercial vehicles, both new and used, slow,” Tam says.
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“Demand is not all about what is happening today,” he adds. “As new and used truck buyers were denied access to equipment because of the supply-chain crunch, they were forced to extend their trade cycles and age their fleets. While this is a short-term tactic, it is a situation that needs to be rectified. It is that replacement of older trucks that will sustain the industry through the trough of the current cycle.”
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.