Prices for used, heavy-duty Class 8 trucks are still on the rise, according to ACT Research Co. (ACT) – jumping 6% in March from February.
The firm noted sticker prices for used Class 8 tractors began increasing in early 2010 and show no signs of slowing down.
“Inventory on hand continues to be very tight,” noted Steve Tam, ACT’s vp-commercial vehicle sector. “Used prices will continue to rise, driven by tight availability of low-mileage and late model units.”
“Pent up demand started in the first quarter last year and hasn’t stopped,” Bob Glenn, director of remarketing for Penske, recently told Fleet Owner. He added that used tandem and single axle Class 8 day cab tractors are displaying the most strength, though all models of used trucks in Penske’s inventory are selling well.
Steve Clough, president of national used truck dealership chain Arrow Truck Sales, noted at FTR Associates 2010 Transportation Conference that the used truck shortage now occurring is due to the record low production rates of new trucks experienced during the past few years.
He pointed out that new truck production slipped from 133,000 units in 2008 to 95,000 units in 2009 and is expected to finish out 2010 only around 110,000 units – not enough to restock the used truck market significantly.
Thus, combining that atypical spike in demand with low new truck production rates from 2007 to 2009 – volumes that feed the used truck market three and four years out – means used truck supplies are going to be short for at least the next three to four years, Clough said.
