According to the latest State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research, used Class 8 retail sales faltered for the first time in three months in July, declining 7.8% month over month. Average mileage decreased 2%, with average price down 5% and age 1% month over month. Longer term, average volumes jumped 19%, price and age dropped 30% and 3%, respectively, and miles was flat.
“Sales usually dip a percentage point or two in July, so the decrease was in line with but greater than expectations,” Steve Tam, vice president at ACT Research, said. “Including auctions and wholesales, the total market volume fell 28% month over month in July. Compared to July 2022, the retail market was 19% larger.”
Since July, some clarity has surfaced regarding two potential market-moving situations. “The UPS Teamsters ratified their contract, avoiding a disruptive strike,” Tam said. “Closer to home, the bankruptcy of Yellow appears to be progressing in a disciplined, methodical, and orderly fashion. The company owns more than 14,000 trucks (primarily Class 8-day cabs) and nearly 45,000 trailers.”
“Were all that equipment dumped into inventory at one time, the result conjures up images of a piranha feeding frenzy,” Tam said. “While it is still very early in the process and there are no guarantees, this approach should help to minimize the negative impact on used equipment values.”
I wanted to personally thank the equipment finance industry for its continued support of the association. The board of directors and my team work tremendously hard to serve the needs of our members. First and foremost, the National Equipment Finance... read more
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