According to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research, used Class 8 volumes (same dealer sales) were 3% lower month-over-month, but significantly higher year-over-year and year-to-date against easier COVID-impacted comparisons in 2020. Average prices were 9% higher compared to March and 50% more expensive than in April of 2020, while average miles and age both dropped 2% m/m and 6% y/y.
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 – Freightliner (Daimler); Kenworth and Peterbilt (Paccar); International (Navistar); and Volvo and Mack (Volvo). This report is utilized by those throughout the industry, including commercial vehicle dealers, to gain a better understanding of the used truck market, especially as it relates to changes in near-term performance.
“April used Class 8 same dealer sales volumes slipped back into negative territory on a month-over-month basis in April (-3%). Historically, sales pull back about 10%,” said Steve Tam, Vice President at ACT Research. He continued, “While the contraction was expected, it was smaller than anticipated. Used truck inventory, as best as we are able to piece together, remained stable in April.”
Looking at the different sales channels for used Class 8 vehicles, Tam commented, “Channel results were oddly mixed, with auctions transitioning to growth in the near term and year-over-year, but lagging year-to-date, albeit by a smaller margin. Wholesale transactions followed the same pattern, which they also experienced in March. Sequential softness came from the retail market, which also bolstered broader longer-term gains.” He added, “At the risk of sounding redundant, the catalysts for current market performance are essentially unchanged. Continued strong freight growth and driver-constrained freight hauling capacity have driven both spot and contract freight rates to new record highs. In turn, improved trucker profitability is a catalyst for increased demand for both new and used trucks.”
ACT Research is recognized as the leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies. ACT Research is a contributor to the Blue Chip Economic Indicators and a member of the Wall Street Journal Economic Forecast Panel. ACT Research executives have received peer recognition, including election to the Board of Directors of the National Association for Business Economics, appointment as Consulting Economist to the National Private Truck Council, and the Lawrence R. Klein Award for Blue Chip Economic Indicators’ Most Accurate Economic Forecast over a four-year period. ACT Research senior staff members have earned accolades including Chicago Federal Reserve Automotive Outlook Symposium Best Overall Forecast, Wall Street Journal Top Economic Outlook, and USA Today Top 10 Economic Forecasters. More information can be found at www.actresearch.net.
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