ACT Research: Preliminary Used Truck Same Dealer Retail Sales Shrank 22% M/M in April
The preliminary Class 8 same dealer used truck retail sales volume balloon deflated in April, shrinking 22% m/m. The decline split the difference with the auction and wholesale markets. As expected, auction activity pulled back (-45%) from March’s quarter-end spike. On the flip side, wholesale deals were up 130% m/m.
Combined, the used truck industry saw preliminary same dealer sales pull back 27% m/m, according to the latest preliminary release of the State of the Industry: U.S. Classes 3–8 Used Trucks published by ACT Research.
Compared to March 2023, average retail price declined 6%. Miles was flat and age increased 1%. Compared to April of 2022, volumes, price, and age declined, and miles was flat.
According to Steve Tam, Vice President at ACT Research, “Historically, April is a pretty average month, slowing 8–10% from March.” He continued, “Clearly, some used truck buyers are beginning to react to the increased pressure of slowing freight and economic uncertainty.”
He added, “The preliminary average retail price (same dealer sales) of used Class 8 trucks sold in April fell 6.0% m/m, to $68,500, 32% below the industry peak in April 2022.”
Tam concluded, “While easier comparisons from this point forward might make it feel like the pricing environment is improving, prices will still be falling sequentially, counteracting increasing optimism.”
ACT’s Classes 3–8 Used Truck 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.
ACT Research is recognized as the leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies. ACT Research is a contributor to the Blue Chip Economic Indicators and a member of the Wall Street Journal Economic Forecast Panel. ACT Research executives have received peer recognition, including election to the Board of Directors of the National Association for Business Economics, appointment as Consulting Economist to the National Private Truck Council, and the Lawrence R. Klein Award for Blue Chip Economic Indicators’ Most Accurate Economic Forecast over a four-year period. ACT Research senior staff members have earned accolades including Chicago Federal Reserve Automotive Outlook Symposium Best Overall Forecast, Wall Street Journal Top Economic Outlook, and USA Today Top 10 Economic Forecasters. More information can be found at www.actresearch.net.