When demand outpaces supply for an extended period of time, it is like a shaken bottle of soda. Eventually, it is going to erupt. According to the preliminary numbers provided by FTR, that is exactly what happened in September.
September 2022 Numbers
FTR estimates the sales for September 2022 to be 56,500 units. That is:
- 169% more than August 2022.
- 102% more than September 2022.
- The highest number of monthly sales ever recorded by FTR.
The culprit of this boom is what we, FTR, and ACT have been saying for months: supply was simply unable to keep up with demand for new trucks due to component shortages and global supply chain woes. Any additional capacity is swallowed like a whale inhaling krill, and that is exactly what manufacturers had in September.
Despite a record breaking month, the trucking industry still has plenty of pent-up demand to relieve through sales, according to FTR Commercial Vehicle Analyst Charles Roth.
“Fleet confidence remains solid entering 2023, as many large national fleets are getting their truck orders in as early as possible for next year’s deliveries. Due to the limited availability of new equipment fleets have not been able to phase out aged equipment over the past two years. As a result, we anticipate replacement demand to stay elevated throughout 2023.”
The pent-up demand effect we are experiencing is parallel to what happened in the summer months of 2020: people hold off on major purchases until there is room for them, and then all of that demand flows at once like an overcharged battery.
This will ultimately be good for the used trucking market as well. As bigger fleets sell off their older trucks, replacing them with newer ones, the supply in the used market will increase and prices will drop. Whether you are in the market for a used or a new truck, it seems as though things are looking up!
Of course, if you are in the market for a new or new-to-you commercial vehicle, TopMark Funding can help through leveraging its network of funding sources to get you the best possible rate for your particular credit scenario. Read on below for more information!
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