ACT Research: Used Class 8 Sales Volumes Fall in November
DEC 28, 2021 - 6:20 am
According to the latest release of ACT Research’s State of the Industry: U.S. Classes 3-8 Used Trucks report, used Class 8 retail volumes (same dealer sales) were down 15% month over month and 16% year over year in November. However, volumes were up 11% year to date.
Average prices in November were 12% higher compared with October, 68% more expensive than in November 2020 and 38% greater year to date. Average miles were 3% lower month over month but up 2% year over year, while average age decreased 2% from October but was 5% older compared with November 2020.
“Used Class 8 same dealer retail sales volumes continued to struggle in November, extending their sequential decline to a second consecutive month,” Steve Tam, vice president at ACT Research, said. “The softness was in exact agreement with seasonal expectations, and whether that was a coincidence or not, dreary new truck sales are keeping a stranglehold on used truck inventory.”
Looking at the different sales channels for used Class 8 vehicles, Tam said, “Near-term channel results were mixed, with auction sales growing 6% month over month, while wholesale activity fell by a similar amount. All three markets experienced lower volumes compared to November 2020. As has been the case so far this year, only the retail segment has improved.
“Looking ahead to next year, the underlying tenet of our outlook is moderate progress on the supply chain front. Assuming this — as well as our equally buoyant expectations for economic expansion and freight activity — happen, used truck sales volumes should also come along for the ride. Used truck prices will continue to benefit from strong demand and tight supply, though growth rates are likely to decline meaningfully as freight hauling capacity rebalances. That said, it is important to note that prices will be retreating from record highs and are not expected to collapse but rather revert in an orderly manner toward the mean.”
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