ACT: Used Class 8 Downward Pricing Pressure Expected as Year-End Nears
OCT 1, 2018 - 6:45 am
The average price of total used Class 8 trucks in August was virtually flat, up 1%, on a month-over-month basis, but fared better when compared to August 2017, according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research.
The report also indicated used Class 8 same dealer sales volumes rose 19% year-over-year, while average mileage increased 4% and average age declined 3% from a year ago. When compared shorter term, same dealer sales volumes rose 17% month over month, ending a streak of three consecutive month-to-month declines.
“Dealers are reporting that used truck sales continue to be better in terms of number of trucks sold and for pricing,” said Brian Armstrong, information systems manager. “So far, 2018 has seen very strong used truck pricing and insufficient used truck inventory to meet rising demand. This situation has led dealers to pay more for used trucks than what is considered normal.”
Individual market segments yielded mixed results last month. Armstrong explained, “Retail and wholesale channels were up month over month, 22% and 10%, respectively, while the auction channel fell 10%. On a year-over-year basis, retail rose 31%, but auction and wholesale markets fell, 14% and 2%, respectively. All three channels are in positive territory on a year-to-date basis.”
The report from ACT 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).
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