Used Class 8 trucks rise in price again in all states
Used Class 8 trucks went up in price again compared to the previous year.
According to ACT Research and other companies, the market is still “hot”, as the amount of stores is much less than the demand. Was reported that sales raised up to 22 800 units in June, compared with 18 000 last year.
The average price for the Class 8 in July was $ 59 377, up from $ 40 666 a year earlier.
“Everything we see and hear tells us that the demand for freight transport is very high. Look at the spot markets,” said ACT vice president Steve Tam to Transport Topics. “The rates aren`t falling significantly. And, unfortunately, we are still worried about the shortage of used trucks.”
ACT provides monthly industry estimates based on surveys of dealers and wholesalers and large fleets to determine the average price, age, mileage and estimated sales of used Class 8 trucks.
According to Charles Smith, regional business development manager for Mission Financial Services Group Corp., an Atlanta-based creditor, requirements for used truck loans have dropped slightly due to high vehicle prices and a lack of equipment.
At the same time, he said, in the past nine months, Mission has increased its loans for repairs by 40%, as usual to owner-operators.
“We’re seeing a rise in repair loans because people don’t sell trucks as they can’t get new trucks,” Smith said.
ACT reports that mileage in July was almost frozen at 443 000, up from 444 000 a year earlier and up from 423 000 in June.
The estimated average age in July was 6 years 7 months, as in the 2020 period, and two months more than in June. “The trucks that were on the market in July were older and had higher mileage compared to June. That`s how I explain the fall in prices,”- said Tam.
According to him, the average price of three-year-old trucks was $ 97 748. This is 38% more compared to $ 70 773 last year.
The price for this segment in July dropped slightly from $ 98 124 in June. The average price of a much older truck jumped even higher.
The estimated average price for an 8-year-old truck was $ 27 532. It`s 60% higher compared with $ 17 054 in the 2020 period.
One public company that, in particular, is reaping the benefits of high prices for used trucks is Penske Automotive that has a large truck rental and leasing division.
“Profit from used truck sales rose 245% to $ 45 million” said Roger Penske, chairman and CEO, during the company’s latest report. “A favorable industry environment and a shortage of both used and new trucks are generally driving demand for trucks.”