Connect with us
Used-Heavy-Duty-Truck-Generic-600x300

Heavy-duty

Used truck prices are making and breaking records

Advertisement

Jason Morgan is the editor of Fleet Equipment. He has more than 15 years of B2B journalism experience covering the likes of trucking and construction equipment, real estate, movies and craft beer industries.

Preliminary used Class 8 volumes dropped 5% month-over-month and 24% year-over-year in August, according to data from ACT Research. Through the first eight months of the year, activity is 8% higher compared to the same period a year ago, ACT said.

Click Here to Read More
Advertisement

Other data released in ACT’s preliminary report included month-over-month comparisons for August 2021, which showed that average prices rose 7%, as average miles were flat and age rose 5%, compared to July. Compared to August of 2020, average price was 47% higher, with average miles and age each up, 3% and 11%, respectively. On a year-to-date basis, average price is 33% above its year-ago level for the first eight months of 2020, with average miles down 1% and age flat on a year-to-date basis.

“Preliminary same dealer sales descended further in August. In a normal market, sales would typically have increased in August, but this market is anything but typical,” said Steve Tam, vice president at ACT Research. “In the context of what can only be described as a stellar economic recovery, demand for seemingly everything, including commercial vehicles, is off the charts. However, sating that demand is proving to be an insurmountable challenge.

Advertisement

“As is usually the case when demand is strong and supply is weak, competition heats up and prices become the battleground,” Tam continued. “Following a brief respite in July, used truck price appreciation returned with a vengeance in August. Many, especially those who feared the market may have peaked in July, are relieved that price growth resumed in August. We hold fast to our outlook that pricing will most likely peak around mid-year 2022, based on current supply and demand dynamics.”

“With considerably fewer options for both new and used equipment, the behavior drives up truck prices,” he added. “This has the unintended consequence of attracting new operators/trucking companies, sending demand for units even higher, which ultimately means truck prices are likely headed even higher. Eventually, the cycle will balance itself; the key question is when.”

Advertisement

POPULAR POSTS

WS-Hendrickson WS-Hendrickson

Sponsored Content

How Hendrickson works with OEMs to deliver hard-working, driver-friendly suspensions

Sponsored Content

Combating Corrosion – How trailer makers are preventing moisture from leading to higher trailer costs and shorter service life!

Sponsored Content

Your Last-Mile Delivery Tire Choice

Bosch-Heavy-Duty-Truck-Scan-Tool Bosch-Heavy-Duty-Truck-Scan-Tool

Sponsored Content

Diagnosing codes on heavy-duty vehicles

Connect
Fleet Equipment Magazine