Used Class 8 retail volumes, or same dealer sales, were down 12% in September compared to August—a larger drop than the 9% decline that trucking industry data aggregator ACT Research saw in its preliminary data for last month.
“Used-truck sales typically see a small decline in September, relative to August, but this drop exceeded expectations,” said Steve Tam, VP at ACT Research. “As has been the case for the past several months, looking back at new truck production in the recent past has provided some meaningful insight into where used truck sales volumes may be headed in the near term.”
See also: Used Class 8 sales, prices both down in September
“While July’s output lagged, it did not portend the magnitude of the pullback the used-truck market eventually experienced in September,” he added. “That suggests in addition to supply, demand factors may have been at work. That should not come as a surprise to anyone in the industry.”
ACT’s new and now final numbers for September, gleaned from its monthly State of the Industry: U.S. Classes 3-8 Used Trucks report, show average miles up 2% and average prices and age both down 3%, compared to August. Compared to year-to-date 2021, average price and miles were both up, with prices up 20% through September 2022. Average age was down just 1% for that same period.
The report from ACT 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).
See also: Topsy-turvy times for used trucks
The total picture gets better for September when sales of used Class 8 tractors at auction are thrown into the calculations. Because end-of-Q3 auction sales were up 104% over August, Tam said, total used sales were actually 16% higher than the prior month, “which is not unusual at quarter end.”
“Rounding out the channels, wholesale transactions were 18% lower in September, relative to August, as dealers remain cautious about building inventory,” he added. “Developments in the freight and freight rates market, and in particular the spot markets rather than the contract market, remain the best near-term indicator of not only used-truck volumes, but also values.”
