Additionally, the report indicated that longer-term comparisons yielded a 22% decline compared to May 2018, as well as a year-to-date drop of 16%.
Other data released in ACT’s preliminary report included year-over-year comparisons for May 2019, which showed that average prices rose 5%, while average miles shed 1%, and average age increased 7%.
Steve Tam, vice president at ACT Research, commented, “A spring slowdown is not uncommon, and sales generally increase a bit in the summer, but with the headwinds in the freight market, that is unlikely.”
He continued, “Those who watch the industry closely have been expecting the strong pricing environment to soften this year, and based on preliminary May data, it appears as though that transition may have started.”
Tam added, “In the context of lower unit sales and rising inventory levels, the slowing price appreciation is a strong indication that demand for used trucks in waning. Given a similar story in the freight market, the development makes sense.”
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).
Despite some setbacks in containing the spread of COVID-19, the U.S. economy has made strides toward a “new normal.” As a result of the rapid shutdown and reopening of the economy, significant inflationary pressures have had and will continue to... read more
Empathy has long been recognized as the foundation of the innovation process. Leaders like Satya Nadella facilitate empathy in their cultures because they know it will, in turn, foster a culture of innovation. Ignoring empathy risks customer apathy and business... read more