According to the latest State of the Industry: U.S. Classes 3-8 Used Trucks by ACT Research, the Class 8 average retail sale price gained 2.3% m/m in July. On a y/y basis, prices were up 12%.

“The used truck market finds itself in an interesting predicament these days. On the new truck side of the business, the industry has produced and consumed trucks at above replacement rates for seven years running. The net result is excess capacity,” said Steve Tam, Vice President at ACT Research. “Faced with declining demand, the OEMs have responded by laying off workers and reducing output. But without a meaningful increase in freight, it will take time to consume the unused capacity. Fewer new trucks rolling off the assembly line means reduced trade activity, somewhat alleviating concerns about excess used truck inventory. This seems to be helping used truck valuations.”

Tam said at least a portion of the increases in new truck prices is carrying over into the secondary market.

“Along with used truck demand stemming from traditional new truck buyers turning to late-model, low-mileage used trucks as substitutes for new trucks, the used truck pricing environment appears to have turned the corner,” Tam explained.

ACT’s Used Classes 3-8 report 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). This report is utilized by those throughout the industry, including commercial vehicle dealers, to gain a better understanding of the used truck market, especially as it relates to changes in near-term performance.