Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

The Used Heavy-Duty-Truck Market Is “Going To Get Worse Before It Gets Better”

Courtesy of ZeroHedge View original post here.

While the Class 8 heavy duty truck industry has been mired in recession and dragged down by a bloated backlog since 2018, the used truck market hasn’t seen the same collapse yet.

But the key word there, according to several experts, is yet. Brian Cota, vice president of national accounts at Daimler and Steve Tam, a vice president at ACT Research gave presentations that showed the used truck market under pressure and predicted that things could get worse.

Tam "presented a slide showing ACT Research’s most recent data on used Class 8 sales in June, showing an average price that month 2 percent higher than in May and 6 percent more than June 2018," according to FreightWaves

He also noted that "year-to-date, prices are up 10 percent. That is occurring against a backdrop of average miles on a used Class 8 truck flat to down 2 percent from used truck sales in earlier periods."

Tam also shared a chart of the average sale price of a Class 8 used truck. Last year, these prices year-over-year were rising more than 15%. And although there was a solid increase in 2018 used truck demand he said that price increases would be flat to down 5% in 2020.

One silver lining has been the quality of the used vehicles coming to market. Cota said:

 

Earlier this month we noted that Class 8 orders for July had crashed 81% to their lowest monthly total since 2010. The industry booked 10,200 units in July, an astonishing 81% year over year fall, according to ACT Research

This is also down 21% from June and marks the lowest monthly order tally since February 2010. Net trailer orders also continued to plunge, according to data released several weeks ago. 


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!