According to ACT Research’s latest reports, used Class 8 retail volumes (same dealer sales) improved by 12% month-over-month in May. Average mileage was flat, with average price down 3% and age 1%. Longer term, average age, price, and miles were lower, with volumes up year-over-year.
“Sales usually slow four to five percent in May, so the increase was not only uncharacteristic, but also presents a bit of a conundrum in the context of the current economic and freight environments,” said Steve Tam, vice president at ACT Research. “As owner/operators and smaller fleets in particular exit the industry, inventory continues to increase. This is providing remaining fleets with more options than they have had in a long time.
“Auction sales increased 32% m/m in May,” he continued. “Dealers continued their risk-averse track, selling 19% fewer wholesale units compared to April. Combined, the total market swelled 13% m/m in May. Compared to May 2022, the retail market was 17% larger. The auction and wholesale segments also expanded, 43% and 79%, respectively. Their combined performance drove the total market 31% higher y/y.”
Tam concluded that even though the economy and freight conditions are currently weak, the comparison emphasizes the challenging circumstances faced in 2022 due to limited inventory.
