February Used Class 8 Sales Rise 14% M/M and 9% Y/Y
MAR 30, 2020 - 6:30 am
Used Class 8 same dealer sales volumes improved 14% month over month in February, with longer-term sales rising 9% year over year compared to February 2019, 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 that used Class 8 average price in February contracted 6% month over month, with average miles up 1% sequentially and average age down 5% compared to 2020’s opening month. Longer-term, average price and age dropped 15% and 4%, respectively, while average miles were flat.
“Dealers are reporting that used trucks sales have slowed and many people in trucking are asking the question of whether or not used truck prices have hit bottom yet. Most do not think it has,” said Steve Tam, vice president at ACT Research. “Dealers are reporting that they have high levels of used truck inventory, especially aerodynamic sleepers. The market and prices for used vocational trucks – dumps, refuse, etc. – are stronger than for over-the-road sleepers.
“The used aerodynamic sleeper segment is the victim of its own success in 2017 and 2018, and as such, is now oversupplied at the same time demand is contracting. This has led to a weak pricing environment and uncertainty for dealers and truck OEMs when trading for used aero sleepers,” Tam said.
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). This report is utilized by those throughout the industry, including commercial vehicle dealers, to gain a better understanding of the used truck market, especially as it relates to changes in near-term performance.
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