Used Class 8 same-dealer retail sales grew 20% month-over-month in February but were 14% lower compared to the same period in 2021, ACT Research reported on March 15.
Other preliminary data released from ACT’s State of the Industry: U.S. Classes 3-8 Used Trucks showed that the average retail price of a used truck rose 8%, as average miles were flat and average age rose 1% compared to January. Compared to February 2021, the average retail price was 85% higher, with average miles and age greater by 3% and 7%, respectively, according to the report.
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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).
“Presumably, the bumps in December and January new truck production freed the logjam of trucks headed to the used truck market,” said Steve Tam, VP of ACT Research. “As evidence, preliminary same-dealer retail sales popped in February, more than the expected seasonal gain.”
He added: “More importantly, it is obvious that demand for used equipment remains robust. Regardless, inventory is still in short supply, so longer-term comparisons continue to be unfavorable.”
Tam noted that preliminary average retail used prices for Class 8 trucks have “yet to show any signs of retreat, climbing 8% month-over-month in February. Near-term growth continues to be overshadowed by longer-term comparisons, where prices were up 85% year-over-year and 85% year-to-date.”
See also: Used Class 8 prices rise, trailer orders remain low
“It is also worth noting that the higher prices are shrugging off the fact that, collectively, used trucks are older and have more miles on them for just about every time-period comparison,” he concluded. “The presumption is that fleets have been forced to hold onto their trucks longer than normal as they await delivery of the supply chain constraint delayed new units.”
As new truck production goes, so goes the used market
Retail sales and prices for used trucks usually ebb and flow with new vehicle production and sales, not including other complicating factors.
Earlier this month, ACT also reported that preliminary Class 8 net orders in February were 21,000 units, while net orders for Classes 5-7 rose to 18,300 units, indicating continued constrained production of new commercial vehicles.
“Constrained production capabilities and long backlogs continue to impede new order activity,” Kenny Vieth, ACT’s president and senior analyst, said in a March 2 email from the research group. “Based on preliminary February inputs, North American Classes 5-8 net orders were essentially flat compared to January.”
Vieth added: “While order weakness is attributable to supply constraints, the ground rules of data collection play a part: The OEMs only report orders that are scheduled to be built within 12 months. With backlogs effectively stretching 12 months, and with limited forward visibility, order volumes have largely been mirroring production activity.”
“As has been the case for months, we reiterate that with critical industry demand drivers at, or near, record levels, industry strength should be measured with long backlog lead-times, rather than in tepid new order activity,” he concluded.
