Trucking news and briefs for Thursday, July 28, 2022:
The Class 8 used truck market in June saw an increase in sales, along with average price, miles and age, according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research.
Used Class 8 retail volumes (same dealer sales) were 1% higher month-over-month. Longer term, volumes were down 44% compared to the same period a year ago and were 34% lower year-to-date.
Average prices and miles were down 6% and 1%, respectively, in June compared to May, but average age rose 5% month-over-month. Longer term, the average price was higher than June 2021 and year-to-date, as were average miles and age, with prices 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,” said Steve Tam, Vice President at ACT Research. “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.”
Tam added that economic concerns are playing heavily in 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,” he said. “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.