Carriers turning to the used truck market to supplement tractor count have ben met with record prices nearly every month, and that's not likely to change in the immediate future.
Through the first 10 months of the year, used truck sales activity is 4% 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.
Average prices in October rose 3% at the dealership, as average miles and age gained 1% each compared to September. Compared to October of 2020, average price was 67% higher, with average miles and age greater by 3% and 5%, respectively. On a year-to-date basis, average price is 48% above its year-ago level for the first 10 months of 2020, with average miles down 2% and age unchanged on a year-to-date basis.
"Strong used truck pricing into 2022 is essentially guaranteed," said J.D. Power Senior Analyst and Commercial Vehicles Product Manager Chris Visser, who added that residual value forecasts saw a notable increase in 3, 4, and 5 year residuals.
Despite preliminary same dealer sales slipping into contraction territory on a month-over-month basis, ACT Research Vice President Steve Tam said at the unusual, on a seasonal basis, sequential softness held no sway over the longer-term year-to-date comparison, which edged higher.
"The industry’s ability to outpace 2020, albeit by a small margin, is nothing short of miraculous, given all the challenges used truck sellers have faced this year. In the context of the lowest level of inventory the industry has probably ever seen, dealers have pulled out all the stops in an effort to provide buyers with as many units as humanly possible.” Tam said. “However, since dealers are still not able to meet the voracious demand, used truck prices continued on their upward trek in October. Given the dynamics of underlying fundamentals, namely freight and freight-hauling capacity, prices are likely to continue climbing higher in the near term.”
