Preliminary used Class 8 volumes (same dealer sales) fell 14% month-over-month in May, the second consecutive sequential drop, according to ACT Research. Additionally, the report indicated that longer-term comparisons yielded a 22% decline compared to May 2018, as well as a year-to-date drop of 16%.
Other data released in ACT’s preliminary report included year-over-year comparisons for May 2019, which showed that average prices rose 5%, while average miles shed 1%, and average age increased 7%.
“A spring slowdown is not uncommon, and sales generally increase a bit in the summer, but with the headwinds in the freight market, that is unlikely.” said Steve Tam, vice president at ACT Research. “Those who watch the industry closely have been expecting the strong pricing environment to soften this year, and based on preliminary May data, it appears as though that transition may have started. In the context of lower unit sales and rising inventory levels, the slowing price appreciation is a strong indication that demand for used trucks in waning. Given a similar story in the freight market, the development makes sense.”