Used Truck Market Grapples With Instability in May
[Stay on top of transportation news: .]
Used Class 8 truck sales, prices and mileage faced downward pressure from uncertain market conditions during May, ACT Research reported.
Sales volume slipped 0.9% to 22,600 units from the 22,800 units reported in May 2024. They also declined 4.2% sequentially from the 23,600 units sold in April. The average retail sale price decreased 3.1% year over year to $56,813 from $58,627 while also decreasing 2.1% from the $58,025 reported in April. Average mileage dipped 1.2% to 412,000 from 417,000 a year ago but increased 3% from 400,000 the previous month.
“The used truck market is awash in uncertainty that seems to have a stranglehold on both buyers and sellers,” ACT Research Vice President Steve Tam said. “The phrase ‘analysis paralysis’ comes to mind. Parties on both sides of the used truck sales transaction are wondering about everything from tariffs to the status and future of emissions regulations to inventory levels. Of course, top of mind is how and when these dynamics will impact prices.”
Tam
Tam noted that May is usually the third weakest sales month of the year, typically running nearly 5% below average. He also pointed out that sales during the first five months lagged 6.7% behind last year.
“We saw some of the same; there was some weakness in May,” said Trey Golden, vice president of used truck sales at Rush Enterprises. “It was a weak month for us [and] the industry. But then it bounced back some in June. So it doesn’t look like we’re falling again, and it doesn’t feel like we have much further to fall. So we’re not expecting to keep falling. But May was weak for sure, and I don’t know why.”
ҴDZ
Golden noted there was some momentum building before conditions worsened in May. He pointed out that this could support the idea that the industry has been bouncing along the bottom of the freight cycle. But he is optimistic that the setback is temporary.
“We really thought we were building some solid momentum and then had a little weakness in May,” Golden said. “We’re pretty bullish on the used truck market right now. But like I said, you’re talking about May, and May was weak, so hopefully that was just a blip or a head fake or something, and we can go forward constructively from here.”
TT's Seth Clevenger and Mike Senatore unpack the trends, surprises and shake-ups that define this year's Top 100 for-hire carriers.Tune in above or by going to .
J.D. Power found in its monthly market report that Class 8 auction volume increased sequentially while pricing pulled back mildly. The selling prices for 4- to 6-year-old trucks at auction averaged 23.9% higher than May 2024. The report noted that there hasn’t yet been a meaningful number of 3-year-old trucks moving through auctions, as is historically expected by midyear, possibly indicating owners are keeping their trucks in service longer. The report also showed that the retail side saw an increase in volume and pricing.
“Most of the severe tariffs announced earlier this year have been rolled back, although some degree of protectionism is still present in the trade agreements,” the J.D. Power report said. “Current tariff levels will result in varying degrees of price increases in selected industry segments. Each new ‘deal’ announced adds incremental visibility to business planning beyond the next 30-90 days, but the trucking industry is still in a cautious frame of mind.”
Want more news? Listen to today's daily briefing belowor go here for more info:
