At the start of the year, we wrote an article laying out our predictions for 2020. Nobody could have predicted the wild ride 2020 has been so far, but news has broken that yet another prediction we had has turned out to not happen: new truck sales are on the rise.
Two studies, one from the Freight Transportation Research Associates (FTR) and the other from Americas Commercial Transportation Research Company (ACT), report that sales of new Class 8 vehicles total around 15,500 (according to FTR) and 16,000 (according to ACT). This is an increase of over 130% from May’s numbers.
That might not seem too interesting because of the coronavirus pandemic slowing down the economy, but consider this: compared to June 2019, June 2020’s new truck sales are about 20% higher. Even if COVID-19 reduced orders, it was not enough to slow down sales growth.
Don Ake, FTR’s vice president of commercial vehicles, feels this is a good sign of a recovering economy. “June’s order activity is good news, after last month’s disappointing number. We expected orders to average around 10,000 units for a few months, and now they have averaged 11,000 for the past two months. The Class 8 market is on the slow, steady recovery that matches our forecast.”
ACT also reported that Class 5-7 trucks sold more in June 2020 than in May 2020, but less than in June 2019. It appears the smaller commercial truck market has not fully recovered from the pandemic just yet.
Advances in technology for heavy-duty trucks appear to be fueling the demand for newer trucks, despite the glut of used trucks on the market that are available for cheap.
In any case, all the mounting evidence in the trucking industry shows that the economy is recovering from the COVID-19 pandemic and should be back to normal working order soon enough.
CORONAVIRUS [COVID-19] UPDATES AND ARTICLES
- Trucker’s Guide to When Every State is Reopening
- FMSCA Extends Hours of Service Relief Declaration
- How Truck Drivers Can Keep Their Cabs Clean During COVID-19
- International Roadcheck Delayed Over COVID-19 Fears
- Pennsylvania Reopens (Some) Rest Stops
- Truck Dealers Seek “Essential Status”
- Navistar And Paccar Halt Production
- Mack And Volvo Suspend Truck Production
- Fmcsa Expands Its COVID-19 Response
ABOUT TOPMARK FUNDING
TopMark Funding is a top-rated semi-truck financing and equipment financing company located in Roseville, CA. We specialize in commercial trucking and heavy equipment. Our mission is to become your long-term financial partner by helping you grow your trucking business and fleet.
We’re not here for the short-term, we’re on the long-haul with you!
Learn more about Semi-Truck Financing
Fill out the contact form or give us a call at (866) 627-6644. One of our truck financing specialists will contact you as soon as possible to go over your truck lease needs and learn more about you and your business financing goals.