ACT: March Used Truck Metrics Flat M/M, Longer-Term Sales Up 5% Y/Y
APR 28, 2020 - 6:30 am
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 dropped just 1% month-over-month in March, with longer-term sales rising 5% year-over-year compared to March 2019, and 12% year-to-date.
The report also indicated that used Class 8 average price, miles and age in March were essentially unchanged compared to the previous month. Longer-term, average price, miles and age all contracted year-over-year, as well as year-to-date, down respectively from the first three months of 2019 by 15%, 1%, and 7%.
“Dealers are reporting that there are more trucks than buyers, which is not new news. This has kept downward pressure on prices, particularly for late model aerodynamic sleepers,” said Steve Tam, vice president at ACT Research. “Some dealers are saying they just want to get rid of inventory and take their losses. Dealers had become accustomed to getting more money than what is normal for used trucks in 2018 and early 2019.”
Tam added, “When trucks are overvalued, sellers can ask for higher pricing on their used trucks, as long as demand supports higher-than-normal prices. Unfortunately, when the market adjusts, taking big losses is the only solution. The good news for buyers in a falling used truck market is that there are some very good bargains to be had.”
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.
Additionally, ACT Research has created an easily accessible COVID-19 MARKET WATCH webpage to track noteworthy high frequency macroeconomic and transportation-specific market indicators.
Nearly two years ago, the COVID-19 pandemic forced the equipment leasing industry to continue to provide essential finance solutions to business owners while following necessary safety protocols to protect the health of employees, partners and customers. Those protocols involved limiting... read more
Although 2021 brought some hope, the equipment finance industry continued to grapple with the effects of the COVID-19 pandemic, including labor shortages, supply chain disruption and more. To dig into how these developments have affected the bank-owned sector of the... read more