ACT: May Used Truck Sales Volume Down 12% M/M, Price and Miles Up
JUL 2, 2020 - 6:08 am
According to the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research, used Class 8 same dealer sales volumes dropped 12% month-over-month in May, with longer-term sales down 20% year-over-year compared with May 2019. Year-to-date sales through May were up an incremental 2%.
The report also indicated that used Class 8 average price and miles rose from April’s levels, up 2% and 1%, respectively, with average age 1% lower than 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 five months of 2019 by 16%, 2% and 6%, respectively.
“Dealers are reporting that low used truck prices and high inventories were challenges before COVID-19 struck and they continue to be an issue,” Kenny Vieth, president and senior analyst at ACT Research, said. “The upside for people buying trucks is that there are bargains available. Not surprisingly, most sales reps are reporting their business as much slower now than in early March, with some saying they are doing well with dump trucks and other vocational truck types, while aerodynamic sleepers continue to be grossly oversupplied.”
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 created a COVID-19 MARKET WATCH webpage to track noteworthy high frequency macroeconomic and transportation-specific market indicators.
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