Used-Truck Pricing Remains Stable As Availability Improves, Analysts Say

John Sommers II for TT

Average used truck prices have remained stable in recent months as the availability of used equipment continued to improve, analysts said.

The average price of a used Class 8 truck sold in June was $48,807, up from $47,452 a year earlier but down from the record of $49,928 in May, ACT Research reported. July figures were not yet available.

ACT Vice President Steve Tam said an increase in used truck prices has slowed as strong new truck sales have led to more trade-ins and a greater supply of used vehicles.

“We’re starting to get some availability of inventory, and that’s reflected in the softer sequential pricing,” he said. “As supply becomes a little more plentiful, it acts as a pressure relief valve for pricing.”

U.S. retail sales of new Class 8 trucks surged in June to the third-highest monthly total on record, according to WardsAuto.com.

Meanwhile, American Truck Dealers said the average retail price for a used Class 8 sleeper tractor was $59,657 in June, up from $57,138 a year ago and $59,092 in May. Pricing remained below the all-time high of $63,325 set in April.

ATD analyst Chris Visser said the used market is “still extremely strong.”

“I’ve seen very little change in recent months, just really stable pricing for the most part,” he said. “The supply continues to increase, but based on pricing, it doesn’t

look like demand has let up. People are still paying historically high prices for used trucks.”

ACT’s Tam said vocational trucks remain scarce and are still bringing top dollar, but late-model sleepers are more abundant.

“We appear to be oversupplied in 2010 to 2012 model-year sleeper trucks right now, so prices on those are coming down faster than for some of the other cohorts,” he said.

Average mileage also declined in June, providing further evidence that a greater amount of late-model equipment has reached the secondary market.

The average mileage of a used truck sold during the month was 508,000, down from 519,000 in May and 514,000 in June 2014, ACT said.

The dealers, wholesalers and auctioneers tracked by ACT sold 2,643 used trucks in June, up from 2,496 in May but down from 2,715 in June 2014. ACT’s sample represents about 8% to 10% of total used truck transactions.

ATD’s Visser said 3-year-old trucks are starting to depreciate a bit faster than older models, likely due to the increased number of those younger trucks available on the market.

“There are a lot of 2012s out there right now, and 2013s are entering in greater numbers also,” he said.

Due to the newer mix of trucks entering the market, average mileage declined to 506,302 in June, compared with 510,810 in May and 521,586 a year earlier.

Looking ahead, Visser said he expects to see only modest erosion in the values of used trucks for the remainder of this year.

“The newer the truck, the heavier the depreciation will be,” he said. “Three-year-old trucks will probably not bring numbers quite as high as they have been. It’s still historically high, but the supply is increasing to the point where depreciation will start to be evident.”

Rick Clark, vice president at National Truck Protection, a Cranford, New Jersey-based provider of used truck warranties, said business has slowed in July and into August in line with normal seasonal patterns, but pricing has remained stable.

Clark, who is also president of the Used Truck Association, said 2011 and 2012 models are among the most plentiful.

He also said some wholesalers are showing more interest the first generation of trucks with diesel particulate filters, starting with the 2008 model year, because most of the trucks that predate that emissions mandate have become too scarce or have accumulated too many miles.

Clark predicted that more used-truck buyers will be looking for 2012-2013 models this fall to replace older equipment.

“You’ll see a lot of guys who are still holding onto the 2007s have to move up,” he said.