Used truck retail sales increased 24% month over month for February, ACT Research says.
"The jump was larger than expected based on historical seasonality, which called for a 6% month over month increase. Auction sales improved by an even greater margin (+128%) following their first month of the quarter blues. Wholesale activity also improved, adding 25% month over month," says Steve Tam, vice president. "Total reported preliminary sales finished February 54% higher than January. Rather than signaling a surge in demand, the uncharacteristically strong showing seems to indicate a catch-up from weather-related softness in January's weak showing."
Tam added the preliminary average retail price slipped 1% in February, down to $53,969. Seasonal expectations called for a 6% gain.
In January, J.D. Power reported both auction and retail pricing was up and volumes were down. Retail pricing was up 1.7% month over month and 7.1% year over year. Volumes were down slightly from December, but up year over year.
"Trucking capacity may be tightening quicker than predicted, which would counteract, to an extent, increased trade volume driven by higher new truck deliveries," J.D. Power states. "Higher freight rates mean increased demand for late-model, low-mileage trucks. Economic and trade policy uncertainty is the new normal, but as long as consumers continue to spend, freight and equipment metrics should continue to move in the right direction."
