According to ACT Research’s latest research, State of the Industry: U.S. Classes 3-8 Used Trucks, U.S. Class 8 used truck sales increased by 12% month-over-month in August.
“Seasonally, August is the second-best sales month of the year, exceeded only by October. Auction sales also improved in August but recouped only a portion of the decline they saw in July. Wholesales rounded out the upbeat August market, with dealers trading 46% more trucks compared to July,” said Steve Tam, vice president at ACT Research. “Combined, the total market volume swelled 15% m/m in August.”
While sales saw a big increase, things like average mileage, average price, and average age saw a small decline.
Average mileage saw a decrease of 1% while average price and average age both experienced a decline.
In the long term, average volume saw an increase of 3%, average price fell by 26% and average miles and average age declined by 4%.
“While estimates vary, the company owns approximately 12,000 tractors (primarily Class 8 day cabs) and 35,000 trailers. A sizable chunk of tractors was acquired within the past couple years. These late model, low mileage units will probably never see a used truck dealers’ lot or the auction block. This will help to prevent the accelerated depreciation that would have hit had the trucks flooded the secondary market.”
It has been suggested that the main cause for these numbers is due to Yellow Filing for Chapter 11 Bankruptcy.
Our last reporting on Yellow Inc. shared that Experts Anticipate More Bids for Yellow Terminals.
The two companies pitched stalking horse bids, which is a low-end offer that sets the bar so others cannot underbid the purchase price.
Estes said in a statement on Aug. 17 that it was “important to try to bring a proposal to the Yellow bankruptcy estate and its creditors that would add some value for the benefit of all case constituents and reduce some of the uncertainty surrounding this bankruptcy process.”
Old Dominion Freight Line declined to comment.