Preliminary Used Class 8 Volumes Contracted M/M in March, but Remained Positive Y/Y and YTD

ACT Research reports freight is falling and used truck sales and prices are expected to do the same

Preliminary used Class 8 volumes (same dealer sales) contracted 8% month-over-month in 2020’s third month, according to the latest preliminary release of the State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research. Longer-term, volumes rose 5% compared to March 2019, and grew 15% against the first three months of last year.

Other data released in ACT’s preliminary report included month-over-month comparisons for March 2020, which showed that average prices were down 1%, while average miles and age both increased, up 2% and 1%, respectively.

According to Steve Tam, Vice President at ACT Research, “In normal times, sales increase around 15% from February to March, but these are not normal times, and the disconnect is likely the result of COVID-19.” He continued, “Freight was relatively strong for a good portion of March, as retailers and grocers scrambled to restock empty shelves. With that work largely complete, freight is falling and used truck sales and prices are expected to do the same.” Tam concluded, “The economy is expected to descend into recession, if it has not already done so, and with uncertainty about virtually everything high, the well prepared will plan for the worst while hoping for the best.”

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