Demand for Class 8 used trucks fell in 2014 by 5%, according to a new report from ACT Research. ACT cited a shortage of inventory as the primary reason for the drop.
“There is a shortage of desirable late model, low mileage inventory,” said Steve Tam, vice president of commercial vehicle sector at ACT.
However, because ACT typically collects data from 8-10% of the retail industry the shortage is likely showing a drop in used truck sales only for that select group, according to Tam. The used truck industry as a whole actually saw sales rise from 235,000 trucks to 250,000 trucks overall, an increase of about 6%.
The difference in outcomes between ACT’s group of dealers and the industry as a whole was likely caused by new dealers entering the market due to a rise in the value of assets. As the value of used trucks increased, not traditional sellers, like fleets, were selling used trucks directly, rather than using dealers as a middle man, which skewed the numbers, according to Tam.
Pricing was up 18% in December, reflecting the improved value of used trucks.The volume of used Class 8 trucks ordered improved to 2,078 units in December, an increase of 8% month over month.
“For total 2014, used Class 8 truck volumes were down 5% and average miles decreased by 2%,” said Tam. “We look for pricing to continue their growth in 2015 but at a decreasing rate.”