Class 8 Market Correction Continues
Auction volume increased substantially this month (the highest figure in 18 months) and pricing continued to steeply decline. It appears volume is driven mainly by small fleet liquidations, large fleets offloading their oldest units and individuals either exiting the industry or going to work for a fleet. Pricing declined throughout the month, which means the averages below include higher pricing from earlier in the month. Actual current pricing is lower than these figures reflect and, in fact, should be at or near year- over-year parity at time of publication.
In June, three- to five-year-old trucks averaged 16.7% less money than May, but 19.4% more money than June 2021. Year over year, late-model trucks sold in the first six months of 2022 averaged 80.7% more money than the same period of 2021. Year to date, four- to six-year-old sleepers have depreciated 6.9% per month on average.
Through June, late-model pricing was still 68.9% higher than the previous pre-pandemic peak in Q3 2018, so values are still extremely high by historical standards. Also, the newest, lowest-mileage trucks have barely depreciated at all. Pricing will continue to drop closer to historical norms, but current freight economics support a relatively healthy used truck market once we work through the excess capacity of the pandemic spot rate bubble.