Class 8 same-dealer used truck sales volumes continued declining in July, according to the latest data tracked by ACT Research, falling 5% month-over-month.
Yet Steve Tam, ACT’s vice president, noted in a statement that the average price of used Class 8 trucks increased 2% in July, offsetting most of the price decline experienced in June.
“The retail market held the total market price up, posting an increase of 4% month-over-month, while the auction and wholesale markets reported [price] declines of 10% and 1%, respectively,” he added. “We expect pricing to remain at or near current levels through the second half of 2017.”
However, John Larkin – managing director and head of transportation capital markets research for Stifel Capital Markets – noted in a resecent research update that though used truck values have “stabilized,” in his words, there is little hope for much improvement in used truck prices over the short to medium term.
“As carriers upgrade their fleets to more fuel efficient and more reliable trucks equipped with automated transmissions, a surplus of three, four, and five year old tractors continues to be flushed in a used truck market that continues to be plagued by mediocre demand,” he said.