ACT Research: June Used Class 8 Sales Volumes and Average Miles Fall Sequentially
JUL 27, 2021 - 6:01 am
According to ACT Research’s latest release of its State of the Industry: U.S. Classes 3-8 Used Trucks report, used Class 8 volumes (same dealer sales) were 1% lower month over month in June. At the same time, volumes were down 5% year over year and up 20% year to date. Average prices were 5% higher compared with May and 51% more expensive than in June of 2020, while average miles were 5% lower month over month and year over year. Average age was unchanged from May but down 3% compared with June of 2020.
“Used Class 8 same dealer sales continued to face challenges in June, though they nearly reached parity with May, slipping just 1%,” Steve Tam, vice president at ACT Research, said. “Sales typically increase about nine percentage points from May to June, so they moved counter to expectations, sometimes a precursor signaling impending change. Additionally, anecdotes suggest used truck inventory continued to contract in June, increasing pressure on both sales and pricing.”
Looking at the different sales channels for used Class 8 vehicles, Tam said, “Channel results remained mixed in June, with the auction segment declining in all three time periods. Conversely, the retail markets showed improvement for all comparisons. Wholesale transactions improved in the short term but were weaker longer term.
“Discussions we have had with dealers during the past month have centered on price and availability. Circumstances are forcing dealers and buyers to pay not only way more than normal for trucks but way more than they want to pay. While we do not know when the market will turn, we note that underlying fundamentals suggest that the market transition will be more orderly, absent the popping of any bubbles like in some previous cycles.”
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
If something looks like, walks like and quacks like a duck, then it just may be a duck. Although this type of abductive reasoning can be useful in a wide range of circumstances, it can lead to poor conclusions when... read more