Used Truck Sales Skyrocket Year-Over-Year
ACT Research reports that the number of used Class 8 trucks sold in May 2024 were a whopping 18.1% higher than they were in May 2023; an increase from 19,300 to 22,800.
Details
Used vehicles of all types had been going through a pricing abnormality through the first third of this decade due to the COVID-19 pandemic: a driver could buy a vehicle new, drive it for a bit, and then sell it for more than how much they originally bought it. No time in recorded history has vehicle demand outpaced depreciation like that, especially when considering that on average a new vehicle loses 9% of its value driving off the lot.
It appears that once-in-a-century event has passed, as prices dropping 15.5% in the same period no doubt influenced the increased sales volume.
“Prices are expected to remain stable through most of 2024, transitioning to [year-over-year] growth in Q4. Sequential growth most likely will take place at the end of 2024” said ACT Research Vice President Steve Tam regarding the increase in sales.
The same could be said for April 2024 compared to the same month in 2023: a 29.6% increase. However, the month-to-month increase, going April to May 2024, there was no change.
Conclusion
The most likely culprit for this economic shift for used trucks is simply an influx of supply. Major carriers, ordering new trucks by the dozen, are finally getting their orders filled and the backlog shrinks.These big players in the industry then sell off their older vehicles and have to compete to get the old trucks sold and recoup some of the initial investment. With more assets trading hands across the trucking industry, the business is poised to accelerate.
The good news for you is that if you are planning to expand your fleet with some used but still reliable trucks, prices are cheaper than they have been in a while. TopMark Funding can help by checking your funding options without harming your credit score. Read on below for more as to what we can do for you!
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