ACT Research Report Shows Used Truck Retail Sales Still Rising
APR 21, 2022 - 7:30 am
Preliminary used class eight retail volumes (same dealer sales) grew 23% month over month, but were 23% lower compared to March of 2021, according to the latest preliminary release of the State of the Industry: U.S. classes three to eight used trucks published by ACT Research.
Other data released in ACT’s preliminary report included month-over-month comparisons for March 2022, which showed that the average retail price rose 11%, as average miles and age were both lower, down 3% and 7%, respectively, from February. Compared to March 2021, the average retail price was 90% higher, with average miles and age greater by 3% each.
“Positively, used truck sales continued to benefit from recent moderate supply-chain improvements. Preliminary same dealer retail sales strung together a second consecutive monthly gain ([of] 23%), and a strong one it was, well above the historical seasonal increase of 13%,” Steve Tam, vice president at ACT Research said. “It almost goes without saying that the used truck industry is still plagued by demand greatly in excess of supply. As a result, longer-term comparisons are more representative of current market conditions.”
“A quick look at the average selling price for all reported units (auction, retail and wholesale) presents a pretty compelling argument that the current cycle has just about topped out. The question on everyone’s mind is how quickly will the market correct,” Tam said. “The answer truly depends on what happens with the economy, freight, freight rates and truckers. For the record, ACT Research is not forecasting a recession in 2022 or 2023, or through 2027 for that matter. While recent developments have increased the likelihood, we believe there is sufficient strength to avoid economic contraction” Tam said.
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