Used Truck Sales Jumped 43% M/M, but YTD Are Down 17%

COLUMBUS, IN – In what is largely believed to be an anomaly, used Class 8 same dealer sales volumes jumped 43% m/m in October, following a 5% m/m loss in September, according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research. Longer term, sales were up 7% y/y, but down 17% ytd compared to the first ten months of 2018. The report also indicated used Class 8 average miles increased month-over-month, rose 4%, and were virtually flat year-to-date, while average age inched up 1% compared to September but rose 4% on a year-to-date basis. Average price also shed 13% m/m, while growing 3% ytd.
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.
ACTSeminar58__42“Despite the pop in sales reported above, most dealers are reporting lagging used truck sales; at the same time, inventories are continuing to build,” said Steve Tam, Vice President at ACT Research. He continued, “The two forces are conspiring to drive prices down and creating a buyer’s market.” Tam concluded, “Prices have reached a point that is attractive enough to some buyers who are looking to upgrade their fleets to make a purchase decision, while fleets who have been holding onto trucks that they no longer need are making these trades available for purchase, as freight softens.”
ACT Research is recognized as the leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies. ACT Research is a contributor to the Blue Chip Economic Indicators and a member of the Wall Street Journal Economic Forecast Panel. ACT Research executives have received peer recognition, including election to the Board of Directors of the National Association for Business Economics, appointment as Consulting Economist to the National Private Truck Council, and the Lawrence R. Klein Award for Blue Chip Economic Indicators’ Most Accurate Economic Forecast over a four-year period. ACT Research senior staff members have earned accolades including Chicago Federal Reserve Automotive Outlook Symposium Best Overall Forecast, Wall Street Journal Top Economic Outlook, and USA Today Top 10 Economic Forecasters. More information can be found at www.actresearch.net.