Average Used Truck Price Rises for First Time in 2½ Years
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The average retail price for a used Class 8 truck rose in June for the first time in 2½ years, ACT Research reported.
A used Class 8 truck cost on average $60,324 in June, 10.4% more expensive than the year-ago retail price of $54,621 and 6.2% pricier than the $56,813 reported for May. The annual jump marked the first year-over-year increase since December 2022.
ACT Research Vice President Steve Tam said the volatility of the freight market is having a downstream effect on the truck market.
“How are used trucks able to command higher prices when the economy and freight volumes are stagnant, spot freight rates seem like they are etched in stone and used truck demand feels like it is moving sideways? The answer is not straightforward,” Tam said. “The data and analysis are averages, and different segments of the industry are experiencing different realities.”
[July State of the Industry: U.S. Classes 3-8 Used Trucks Update] - Used Truck Prices Increased in June
The Class 8 average retail sale price gained 6.2% m/m in June. On a y/y basis, prices were up 10.4%.
Read more from the update here: — ACT Research (@actresearch)
Tam noted he has heard that some used truck sales professionals are mining their databases for customers who may be in a position to buy.
Sales volume increased 9.2% to 22,600 units from the 20,700 units reported in June 2024, but was flat compared with the previous month.
Tam also noted that the used trucks sold in June were younger and had fewer miles on them, a trend he has seen unfold for a little while now. Average mileage decreased 4.7% to 403,000 from 423,000 a year ago, and declined 2.2% from 412,000 the previous month.
At least one lender in the commercial space is seeing a still-stagnant market.
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“It was slow,” said Charles Smith, regional business development and marketing manager at Mission Financial Services, about the company’s June results. “We were down year over year, but for the most part we stayed above the red line. We did well, we just didn’t do as expected — as we normally would have —for this time of year.”
He added, “It’s slow out there right now, all around the board.”
Smith also indicated that current weakness for new truck sales could eventually impact the used truck market.
“I just left one of my new dealerships, and they’re not getting a lot in,” he said. “A lot of the major companies are laying off employees, so that slows production on the new side. I hope [that] won’t create a problem in the used market because prices tend to spike when you can’t get new, especially from a lot of fleets. Even the small fleets can’t get the new trucks that they’ve ordered, or they’re canceling orders. That may shoot the used market up a little bit. But right now, with the economy being the way it is, it is slow, super slow out there.”
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J.D. Power found in its monthly market report that Class 8 auction results are trending with historical patterns, even as new-truck buyers wait on the sidelines.
“Entering the second half of the year, the number of 3- to 5-year-old sleeper tractors sold at auction and through retail channels is increasing, as is typical,” the report said. “Fleets and other new-truck customers are still following a conservative purchasing strategy, as order and delivery figures show. However, these end users still need to replace aged and high-mileage iron, which is why we’re seeing some degree of late-model trade activity.”
