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Supply Chain Concerns Real and Tangible for Used Truck Market, ACT Research

October 15, 2021, 07:10 AM
Filed Under: Trucking

Preliminary used Class 8 volumes (same dealer sales) increased 5 percent month-over-month, but dropped 25 percent year over year in September. Through the first nine months of the year, activity is 3 percent higher compared to the same period a year ago, according to the latest preliminary release of the State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research.

Other data released in ACT’s preliminary report included month-over-month comparisons for September 2021, which showed that average prices rose 5 percent, as average miles gained 3 percent and age fell 4 percent, compared to August. Compared to September of 2020, average price was 73 percent higher, with average miles down 1 percent and age up 3 percent. On a year-to-date basis, average price is 48 percent above its year-ago level for the first nine months of 2020, with average miles down 3 percent and age 1 percent lower on a year-to-date basis.

Steve Tam, Vice President at ACT Research, said, “Preliminary same dealer sales bounced back in September, but are lagging behind September 2020. The atypical sequential gain was insufficient to stop the longer-term slide, which has trimmed YTD growth.”

Regarding the impact of supply-chain constraints on the U.S. used truck market, Tam said, “The well-publicized, ongoing supply chain concerns are having a very real and tangible impact on the flow of trades into the secondary market, severely limiting used truck sales at a time when demand is through the roof. And while no one knows for certain when the constraints will be relieved, it is not likely to happen soon or suddenly, leaving sufficient time to adjust.”

He concluded, “Because the law of supply and demand has not and cannot be repealed, used truck prices are left with no alternative but to continue climbing. And that is exactly what they did in September.”

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