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 same dealer sales volumes were up 13% year-to-date against the first seven months of 2019, with average price, miles and age all below July 2019 ytd rates, down 15%, 1%, and 8%, respectively. Near term, the report also indicated that used Class 8 sales volumes rose, up 15% sequentially, with average price unchanged month-over-month, and average miles and age virtually flat, down 1% each, compared to June.
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.
“July’s strong sales can, in part, likely be attributed to the weakness in late spring sales, driven by stay-at-home orders,” said Steve Tam, Vice President at ACT Research. He continued, “That said, the remainder of the year continues to be overshadowed by uncertainty, as businesses evolve to new sales models and small truckers enter and leave the market.”
Tam added, “Regardless of July’s volumes, used truck sales are spotty, with some dealers and sales reps very busy, while others are experiencing very slow sales.” He concluded, “Another part of July’s success may be attributed to new or first-time buyers entering the market, attracted by near-record spot freight rates, with some customers who might otherwise have purchased a new truck turning to the late model, low mileage used trucks instead, after new truck production was halted in the spring to mitigate the spread of COVID-19.”
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.