Preliminary used Class 8 retail volumes (same dealer sales) fell 8% month-over-month, and were 47% lower compared to July of 2021, according to the latest preliminary release of the State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research.
Other data released in ACT’s preliminary report included month-over-month comparisons for July 2022, which showed that average retail price flat, while average miles rose 1% and average age contracted 5% from June’s readings. Compared to July of 2021, the average retail price was 41% higher, with average miles and age greater by 2% and 9%, respectively.
“Given softer spot freight volumes and rates, coupled with still-expensive diesel fuel prices, the logical expectation was for continued declines in values,” said Steve Tam, vice president, ACT Research. However, we got a bit of a twist in the preliminary July used truck data where prices are concerned. Digging deeper may help explain the anomaly. The first thing to notice is the composition of units that were sold during the month. On average, the units were about five months younger, even though they have a few more miles on them.”
ACT’s Classes 3-8 Used Truck Report 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.
“Occasionally, used truck data appear to be nonsensical. However, it is explained by a statistical phenomenon where the relationship between two variables in a population emerges, disappears, or reverses when the population is divided into subpopulations,” Tam said. “In the case of this month’s data, a higher number of higher dollar transactions resulted in improved overall results during the month.”
