ACT: April Used Class 8 Volumes, Average Miles and Age Drop M/M
MAY 28, 2021 - 6:40 am
According to the latest release of ACT Research’s State of the Industry: U.S. Classes 3-8 Used Trucks report, April used Class 8 volumes (same dealer sales) were 3% lower month over month but significantly higher year over year and year to date compared with April 2020. Average prices were 9% higher compared with March and 50% more expensive than in April of 2020, while average miles and age both dropped 2% month over month and 6% year over year.
“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%,” Steve Tam, vice president at ACT Research, said. “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 said, “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. 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.”
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