COLUMBUS, Ind. – Used Class 8 retail tractor volumes (same dealer sales) were down 12% month over month, according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research.
This is a larger drop than the 9% decline that ACT saw in its preliminary data for last month.
Average miles were up 2%, with average price and age both down 3%, month-over-month.
Longer term, the average price for used tractors was higher year-over-year and year-to-date, as were average miles, with price up 20% year-to-date in September, average miles 3% higher compared to the first nine months of 2021 and average age down 1% for the same period.
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.
“Same dealer retail sales of used Class 8 trucks fell in September, shedding 12% m/m,” Steve Tam, vice president at ACT Research, said.
“Used truck sales typically see a small decline in September, relative to August, but this drop exceeded expectations. As has been the case for the past several months, looking back at new truck production in the recent past has provided some meaningful insight into where used truck sales volumes may be headed in the near term.”
Tam added that while July’s output lagged, it did not portend the magnitude of the pull back the used truck market eventually experienced in September.
“That suggests in addition to supply, demand factors may have been at work,” Tam said. “That should not come as a surprise to anyone in the industry.
Tam said it is worth noting is total used truck sales for September were 16% higher month-over-month.
“This is due to outsized auction activity (104% month-over-month), which is not unusual at quarter end,” Tam said. “Rounding out the channels, wholesale transactions were 18% lower in September, relative to August, as dealers remain cautious about building inventory. Developments in the freight and freight rates market, and in particular the spot markets rather than the contract market, remain the best near-term indicator of not only used truck volumes, but also values.”
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