The used truck conundrum

The used truck conundrum

Supporting data

This data is reinforced by ACT Research Co.’s October used sales report, which found that used Class 8 truck metrics continued to be mixed, and volumes shrank 3% month-over-month (m/m) despite longer term comparisons being stable, with volumes down a mere 1% year-over-year (y/y), and the past nine months flat relative to the same period in 2014.

“ACT expects the year-to-date (YTD) mileage numbers, now 9% lower than 2014, to remain low, as the industry continues to work its way through the supply of underutilized trucks from the 2008-2010 economic downturn and as new truck buyers shorten their trade cycles,” said Steve Tam, ACT’s vice president—commercial vehicle sector. “Conversely, the average age of U.S. Class 8 used trucks sold in October could not have been more mixed. Age fell to 90 months, a 3% m/m improvement. Compared to October 2014, trucks were 2% older, while age remained relatively flat YTD. Additionally, average prices climbed 4% m/m, holding onto a 1% YTD gain for the third consecutive month.”

“It should be noted that the ‘softening market’ is mostly in reference to Class 8 sales,” points out Eugene Tangney, vice president and global product manager of asset management for Ryder Trucks, “and trailers are still doing well in the market.”

That being said, tractors are the biggest driver in the market so they get a lot of attention. After an elongated time where the market price was being driven by a lack of supply, it has caught demand. Simultaneously, we are seeing a dip in demand.

Among the most common reasons for both the increase in supply, and dip in demand are the driver shortage, freight volumes declining, costs, and fears associated with “new technology” units, and fewer “pre-technology” units available in the market.

“With a softening in the used vehicle market, it’s becoming harder and less profitable for fleet owners to dispose of their own vehicles when it comes time to retire them out of their fleet and/or upgrade to newer vehicle technology,” Tangney concluded.

You May Also Like

New ways to help your trucks maintain the proper tire pressure

Let’s take a look at some of the new products that are helping trucking companies get the most ROI out of their tires.

Tire-Care-Generic-800x400

As evidenced by all the new tire inflation offerings at this year’s NACV show back in October, new technology is allowing fleets to keep a closer eye on tire pressure. Let’s take a look at some of the new products that are helping trucking companies get the most ROI out of their tires:

What’s behind the slow adoption of FA-4 oil?

Introduced three years ago, the American Petroleum Institute (API)’s CK-4 and FA-4 oil categories were billed as the next generation of oil, improving on the engine protection and fuel economy benefits offered by previous engine oil categories.

Slow-Adoption-Oil-800x400
How will today’s ‘customer focus’ translate to tomorrow’s electric trucks?

Over the past three years, OEMs have invested heavily in driver-focused equipment benefits—from cozy creature comforts to uptime- and productivity-boosting technology. Today, significant R&D investment is going into the development of electric trucks—probing the possibilities of untested powertrains in hopes of producing a product that meets application needs.

Volvo-electric-truck-VNR-800x400
Benchmarking success: Utility fleets are using performance metrics to drive measurable improvements

Fleet executives at the annual Electric Utility Fleet Managers Conference (EUFMC), discussed benchmarking. For fleet managers on the panel, using data and performance metrics is a means of showing opportunities for improvement, through which cost savings can be realized.

International-800x400
Sleeper supremacy: A focus on the customer has led to more fleets spec’ing large, decked-out sleepers

Across the business world, companies are becoming more and more interested in emulating the success of Amazon. It’s a model that many truck OEMs are now following as they sharpen their focus on fleet customers, learn what equipment will meet the customers’ needs and deliver the products that they want.

Peterbilt-sleeper-800x400

Other Posts

Economic downturn could be less severe according to latest data

Data from ACT Research reports the potential for limited interest rate increases.

finance-generic
Leasing and Finance Index new business volume for November up y/y

Volume was down 24% from $11.3 billion in October. Year-to-date, cumulative new business volume was up 6% compared to 2021.

Equipment-Leasing-and-Finance-Association’s-survey-of-economic-activity-1400
December Class 8 intake caps off a robust final four months

At 30,300 units, December Class 8 orders show a positive progression moving into the new year.

Penske-Truck-Leasing-Freightliner
Used Class 8 retail sales dropped 19% in November

Longer term, average price and miles were higher y/y, with age up 7% y/y.

Onfleet_6_generic