For how much longer will the used truck market favor buyers?

freight trucks - Trauxit freight app

Throughout 2023, the used truck market has predominantly favored buyers. With fleets upgrading their aging equipment, a surplus of well-maintained trucks, often late models, flooded the used truck sales channels. However, the dynamics might shift as freight levels stabilize or increase while the number of trucks in operation decreases, potentially balancing the used truck market away from buyers’ favor.

The trajectory of the used truck market is closely tied to new Class 8 truck orders, which significantly influence the buying trends. Recent data from both ACT Research and FTR, released in early October, indicate a robust start for 2024 order boards. Preliminary numbers show a surge in new truck orders, with ACT Research reporting a 67% month-over-month increase, marking the strongest order month in the past year.

This surge in new truck orders aligns with the August used truck market activity, where Class 8 retail sales rebounded by 12% month over month. Auction sales also showed improvement, albeit only partially recovering from the dip experienced in July. These trends suggest a more balanced market in the near future.

However, factors such as the destocking of shippers’ inventory and a potential return to growth in freight levels are expected to drive down used truck prices. Additionally, the market is influenced by sleeper specifications, engine types, and overall truck outfitting, making it a complex interplay of supply and demand dynamics.

While the used truck market remains sensitive to these fluctuations, industry experts continue to monitor the trends closely. The balance between new truck sales, market demand, and fleet upgrades will play a crucial role in shaping the trajectory of the used truck market in the coming months.

Leave a Reply

Your email address will not be published. Required fields are marked *