June used Class 8 retail volumes (same dealer sales) were 1% higher month over month according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks report from ACT Research. Longer term, volumes dropped 44% year over year and were 34% lower year to date.

In addition, average prices and miles were down 6% and 1%, respectively, compared with May, but average age rose 5% month over month. ACT Research also noted that average prices were higher year over year and year to date, as were average miles and age, with price up 74% year to date in June, average miles 3% higher compared to the first six months of 2021 and average age 6% older for the same time period.

“Same dealer retail sales of used Class 8 trucks held almost steady in June,” Steve Tam, vice president at ACT Research, said. “The gain is smaller than expected, at least as far as typical seasonality is concerned. Normally, volumes are about 5% larger in June relative to May. In the grand scheme, June sales are very average, meaning almost no seasonal adjustment is necessary to account for buying habits and/or patterns.

“However, seasonality is not the overarching driver of volumes in the current market. The picture is much more dependent upon what is happening in the economy, freight markets and with new truck production and sales. Clearly, there are concerns in the economy that have direct implications on the used truck market. As the economy and freight begin to cool from their torrid pace over the past two years, it is logical and expected to see demand for commercial vehicles, both new and used, slow. However, demand is not all about what is happening today. As new and used truck buyers were denied access to equipment because of the supply chain crunch, they were forced to extend their trade cycles and age their fleets. While this is a short-term tactic, it is a situation that needs to be rectified. It is that replacement of older trucks that will sustain the industry through the trough of the current cycle.”