Used Class 8 Retail Sales Volumes and Prices Rose YTD in November, While Average Miles and Age Were Flat

ACT Research reports used Class 8 retail volumes were 15% lower month-over-month

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 16% y/y, but up 11% ytd. Average prices were 12% higher compared to October, 68% more expensive than in November of 2020, and 38% greater ytd. Average miles were 3% fewer m/m but up 2% y/y, while average age decreased 2% from October but was 5% older compared to November of 2020.

Used Class 8 same dealer retail sales volumes continued to struggle in November, extending their sequential decline to a second consecutive month,” said Steve Tam, Vice President at ACT Research. He continued, “The softness was in exact agreement with seasonal expectations, and whether that was a coincidence or not, dreary new truck sales are keeping a stranglehold on used truck inventory.”

Looking at the different sales channels for used Class 8 vehicles, Tam commented, “Near-term channel results were mixed, with auction sales growing 6% month-over-month, while wholesale activity fell by a similar amount. All three markets experienced lower volumes compared to November 2020. As has been the case so far this year, only the retail segment has improved.”

He added, “Looking ahead to next year, the underlying tenet of our outlook is moderate progress on the supply chain front. Assuming this, as well as our equally buoyant expectations for economic expansion and freight activity happen, used truck sales volumes should also come along for the ride.” 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. That said, 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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