Used Class 8 Retail Sales Volumes Open 2022 Lower; Prices Continue to Increase

ACT Research reports that used Class 8 same dealer retail sales volumes dwindled further in January

According to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research, used Class 8 retail volumes (same dealer sales) were 15% lower month-over-month. Longer term, volumes were down 37% y/y. Average prices were 7% higher compared to December, and 83% more expensive than in January of 2021. Average miles rose 2% m/m and 4% y/y, while average age was flat compared to December, but up 6% compared to last January.

“Used Class 8 same dealer retail sales volumes dwindled further in January. The sequential drop was the fifth straight decline, while sales have been weaker for the past seven months,” said Steve Tam, Vice President at ACT Research. He continued, “It is worth noting that sales typically fall in January and the magnitude of the drop aligned with expectations. Interestingly, the slowing in the secondary market belies recent developments in the new truck market.”

Looking at the different sales channels for used Class 8 vehicles, Tam commented, “Near-term channel results moved in the same direction, but to widely varying degrees, with auction sales falling 86% m/m, while wholesale activity slipped just 10%. All three markets also experienced lower volumes compared to January 2021.”

He added, “We believe that the industry will make progress clearing some of the supply-chain hurdles, allowing for moderate improvements in new truck production. The higher output should help increase the flow of equipment into the secondary market, helping to boost sales volume and alleviate some of the rampant price appreciation the market experienced in 2020 and 2021.” Tam concluded, “Used truck prices will continue to benefit from strong demand and tight supply, though growth rates are likely to decline meaningfully, as freight hauling capacity rebalances, and it is important to note that prices will be retreating from record highs and are not expected to collapse, but rather revert in an orderly manner toward the mean.”

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