ACT: July YTD Class 8 Sales Up, Average Price, Miles & Age Down
AUG 14, 2020 - 6:56 am
Preliminary used Class 8 volumes (same dealer sales) grew 16% month-over-month in July, according to the latest preliminary release of the State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research. Longer-term, volumes rose 48% compared to July 2019, and were up 7% when measured against the first seven months of last year.
Other data released in ACT’s preliminary report included month-over-month comparisons for July 2020, which showed that average prices increased 4%, while average miles and average age each decreased, down 4% and 1%, respectively, compared to June. Year-to-date, average price, miles, and age were all lower, down 17%, 2% and 7%, respectively, compared to the first seven months of 2019.
“The current economic slowdown is largely driven by a dramatic reduction in spending on services, which really is making the situation ‘different this time,’” Steve Tam, vice president at ACT Research, said. “In the commercial vehicle world, that means that freight continues to move, albeit at a somewhat lower pace.”
“The upshot is that truck sales, both new and used, are performing at better than expected levels. That said, on the used truck side, this is curious, particularly given the number of trucking jobs that have been lost since COVID-19 started,” Tam said. “Unemployed truckers temporarily tighten capacity as their trucks are sidelined. This has led to increased freight rates, which has enticed first-time buyers to snap up equipment and jump into the fray.”
ACT’s Classes 3-8 Used Truck Report 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.
Additionally, ACT Research has created an easily accessible COVID-19 MARKET WATCH webpage to track noteworthy high frequency macroeconomic and transportation-specific market indicators, which can be found by clicking here
Commercial lending is incredibly behind consumer lending when it comes to technology. How can the equipment finance industry learn from the consumer space? What technology trends does the industry need to adopt to thrive as we head into 2021 and... read more
With the onslaught of the COVID-19 pandemic and the resultant torrent of loan defaults, secured lenders are scrambling to determine their remedies. Of course, foreclosure is a key mechanism of enforcement at the forefront of the minds of secured lenders.... read more