- Mixed market signals: While the overall used Class 8 market saw a 23% surge in February retail sales, specific segments like used day cabs are facing significant pressure, characterized by a nearly 20% year-over-year contraction in inventory and falling auction values.
- Inventory and pricing volatility: Used semi-trailer inventory has declined for eight consecutive months, with flatbed trailers leading losses. Conversely, pricing shows a sideways trend, where auction values are beginning to show strength—climbing 2.9% month-over-month despite general softening in asking prices.
- Operational tailwinds and headwinds: Market recovery is being driven by increased OEM production and a rebound in the semi-trailer sector, though industry experts warn that rising fuel prices remain a primary challenge that could impact truck and trailer demand heading into the summer months.
The used heavy-duty truck market sent mixed signals heading into spring. Used day cab trucks are under significant pressure, with inventory levels, asking values, and the largest year-over-year auction value drop, according to a report from Sandhills Global.
In the overall market, inventory continued its downward trajectory in March, falling 5.07% from February and 15.71% compared to a year ago. Sleeper trucks led monthly declines with a 5.83% drop, while used day cab trucks saw the steepest year-over-year contraction at 19.49%.
Pricing softened as well, with asking values decreasing 1.53% from March and down 2.45% year-over-year. Used sleeper trucks saw the sharpest monthly asking price decline at 2.02%, and day cabs again led the yearly decline at 3.94%.
Auction values reported a contrast—inching up 0.68% from February, though still 1.05% below year-over-year, with the overall trend moving sideways. Day cabs saw the largest monthly auction gain at 2.01% but also posted the largest year-over-year decline at 2.33%.
Trailers extend their slide
Used semi-trailer inventory extended its losing streak to eight consecutive months in March, declining 4.3% from February and 27.01% from the prior year. Reefer trailers saw the steepest monthly inventory drop at 13.79%, while flatbed trailers led year-over-year losses at 29.22%.
On the pricing side, asking values dipped 0.18% month-over-month and inched up 0.41% on an annual basis, and are trending up. Drop deck trailers saw the largest monthly asking value decline at 1.21%, while dry vans fell the most year-over-year at 5.74%.
Auction values showed more strength, climbing 2.9% from February and 1.4% from a year ago, with reefer trailers leading the monthly surge at 6.14%. Used dry van trailers posted the largest year-over-year decline at 10.95%.
“Business has improved in the truck and trailer markets, with semi-trailers bouncing back the most,” said Truck Paper Sales Manager Scott Lubischer. “We are finding OEMs are beginning to produce more trucks, which is a good indicator. However, rising fuel prices are creating some challenges in the transportation industry, so that could take a toll on truck and trailer markets as we head into summer.”
Retail defies the gloom
Against that backdrop, February retail activity offered a bright spot, according to ACT Research. Same-dealer used Class 8 retail truck sales surged 23%, ahead of the expected 4% seasonal gain.
“Auction and wholesale markets also both improved in February,” said Steve Tam, vice president at ACT Research. Auction volume jumped 127% month-over-month, recovering from typical “first month of the quarter blues,” Tam noted. Meanwhile, wholesale dealer activity climbed 22% month-over-month. Combined, February total market same-dealer sales volumes exceeded January by 51%.
On pricing, the used Class 8 average retail sale price held nearly flat, slipping just $25 month-over-month to $44,215, while posting a 2.6% gain on a year-over-year basis.
