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 retail volumes (same dealer sales) were 24% lower month-over-month. Longer term, volumes were down 40% y/y. Average prices were down 1% compared to March, but 75% more expensive than in April of 2021. Average miles and age were up slightly from March, at +3% and +4%, respectively, with miles up 6% y/y and age 7% higher than last April.
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.
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“Same dealer retail sales of used Class 8 trucks took a bit of a tumble in April. While normal seasonality predicted an 8% decline, lumpy new truck sales and the lack of used truck inventory are the more likely culprits in April’s slowing,” said Steve Tam, Vice President at ACT Research. He continued, “Waning April new truck sales portend more weakness ahead in the secondary market, though March’s uptick has yet to make its way through the inventory maze.” Tam added, “The April deficit marks the tenth straight month of shrinking year-over-year sales, which have been hamstrung by the curtailed flow of units into used truck inventory. A peek ahead at near-term expectations suggests sales are usually below average in May, then return to normal in June and July before picking up in August.”
Asked about the supply-chain impact on the US used truck market, Tam commented, “While the OEMs aspire to higher new truck production and sales, which would presumably benefit the used truck market, the relief they seek on the supply-chain front has proven elusive.” He concluded by discussing demand, saying, “Inflation persists in taking its toll on consumer confidence and spending. While the spot freight markets have borne the brunt of the initial slowing, contract markets are not expected to escape unscathed. Collectively, lower demand for trucks at the same time capacity additions are still occurring are having the predicted and understandable effect of driving prices for both freight hauling and used trucks lower.”
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.
ACT’s 67th Seminar is scheduled for August 23-25, 2022. The focus will be the potential impact of decarbonization and autonomous technology on commercial vehicles and on-highway transportation. Each event ACT shares its best-in-class data and forecast in presentations, as well as featuring guest speakers to dive into topics of interest for the benefit of attendees. The agenda includes key industry leaders, who will be announced at a later date. For more information about Seminar 67 Watts Under The Hood: Transportation Transformation, click here: https://www.actresearch.net/seminar-67/.
ACT Research recently completed POWER UP, a look at 7 global regions and more than 20 countries in a review of local regulations, infrastructure, and the impact on the adoption of battery and fuel cell electric commercial vehicles through 2040. This forecast is the first of its kind, a review of the decarbonization of commercial vehicles around the world. POWER UP is available now at https://www.actresearch.net/power-up/.
Additionally, ACT Research published an update to CHARGING FORWARD, a North American-centric battery and fuel cell electric vehicle adoption rate forecast, covering 23 vehicle applications, in Classes 4-8 commercial vehicles, through 2040. CHARGING FORWARD is considered by many industry leaders to be the apex of analysis and economic-based total cost of ownership modeling in the industry. And, it is now available for purchase at https://www.actresearch.net/electric-vehicles-charge/.
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Access May's State of the Industry: U.S. Classes 3-8 Used Trucks Press Release.
Access May's State of the Industry: U.S. Classes 3-8 Used Trucks Preliminary Press Release.