The used-truck market cooled in July as more clarity around emissions regulations led to fleets taking delivery of trucks previously ordered.
J.D. Power reported in its monthly Commercial Truck Guidelines report that used retail sales volume was essentially flat in July from June, falling by just a tenth of a truck per same dealer rooftop. Retail sales are up by 1.7 trucks per rooftop year-over-year. Wholesale and auction sales also fell in July, the firm reported.
Prices are also headed down, J.D. Power said, with retail selling prices falling by 3.4% from June to July -- that’s also 6.2% lower than a year ago.
The firm noted that even though freight volume is limited, “increased new truck deliveries means increased trades and downward pressure on used truck values.”
The average age of used trucks sold in July increased by 2 months, while average mileage declined slightly, J.D. Power added.
Overdrive sister company Price Digests’ data for July showed flat to slight increases in used-truck pricing across 2-, 5- and 10-year-old sleeper tractors, as shown in the chart below.
As shown, 2-year-old sleeper values were flat, while 5- and 10-year-old units saw slight increases during the month.
ACT Research’s preliminary used Class 8 numbers for July indicated a 2.9% decline in same-dealer sales overall, which was a larger decrease than expected based on historical trends.
“Auction sales shed 11% m/m, noticeably less than the typical post-quarter-end drop,” noted ACT Research VP Steve Tam.
J.D Power's Chris Visser, speaking Monday at FTR Transportation Intelligence's annual conference in Indianapolis, spoke to the growing importance of auction sales in the overall used mix, with auctions democratized to a great extent beginning with the pandemic. Pre-COVID, auction volumes' percent of total retail measure averaged roughly 63%, he noted, while since it's tracked most times above 70% and even above 80%, where the most recent month landed.
The higher it gets, the more upward pressure on demand in the markets.
“The wholesale segment settled between the other two channels, contracting 4.1% m/m," Tam noted. "Total reported preliminary sales wrapped up July 5.7% lower m/m. Considering the spot freight market appears to have hit a ceiling in July, reduced used truck sales are not surprising.”
ACT’s pricing data also aligned with J.D. Power’s, with the firm reporting a 4.4% decline in July from June to an average of $61,000. ACT Research
”Pricing softened more than seasonal expectations, which called for a little over a 1% reduction,” Tam noted.
[Related: EPA to end DEF derates, roll back emissions warranty reg]
