Price Digests has published its most recent report addressing the used truck pricing volatility seen throughout 2022.
In the new report, Price Digests addresses the wild shifts in used equipment inventory, vehicle conditions and internal transportation and external economic factors that led to last year's pricing carousel.
The report also helps to visualize how current industry conditions have nearly returned to pre-pandemic norms.
One area where the market is moving in the right direction is activity. The total number of used truck listings have been steadily rising for a year and is now approaching levels seen at or before on the outset of the pandemic. Price Digests research indicates used truck market listings peaked at more than 134,000 listings in September 2020, only to fall precipitously in the following two quarters as the economy rebounded and new truck availability was reduced. Additionally, the company states the number of listings in December 2022 was nearly identical to the total seen in the space in December 2019.
Average miles, however, are still on the rise — likely the result of carriers being forced to hold onto equipment longer in 2021 and 2022 before moving assets into the secondary market. The average mileage of a used truck listed in March 2020 when the pandemic began was 373,909 miles. That number ballooned to 453,191 in December 2022.
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Average age of available used trucks has followed a similar path. Average age of available equipment was 7.31 years old in December 2019. That number fell below seven in the latter half of 2020 before rising quickly to 10.22 years old in March 2022. The market has since dropped that number to 8.58 years, showcasing the used truck sector is in the process of turning over its inventory once again.
On the topic of pricing, Price Digests confirms the industry's last peak occurred last spring but shows current prices are still well above historical norms. Average Class 8 pricing was $54,774 in December 2019; it was $69,059 in December 2022. Medium-duty prices followed a similar trajectory.
"As the year unfolds, we'll be watching to see whether pricing continues to decline and how a potential recession impacts activity. We'll also be tracking how other factors, such as labor and fuel prices, cause the market to shift," the company says.
To learn more and read the entirety of the company's report, please go to the Price Digests website. Price Digests is a Randall Reilly entity and a sister company of Trucks, Parts, Service.