While the first eight months of 2020 showed used car pricing 17% than the previous year, the recent bump from July to August saw a 7.8% increase over 2019, according to a recent report from J.D. Power.
“Thanks to this year’s midsummer recovery, our benchmark truck now shows an average monthly price gain of 1.6% per month in 2020,” read the report.
Dealer sales volumes for used Class 8 trucks were also up in August, with ACT Research showing a 17% year-to-date increase against the first eight months of 2019, while average price, miles and age all below August 2019 rates, down 15%, 1%, and 8%, respectively.
“Used Class 8 same dealer sales improvements continue to be attributed to the catch-up of weakness in late spring sales, as well as being driven by better-than-expected growth in freight,” said Steve Tam, vice president at ACT Research. “That said, the remainder of the year continues to be overshadowed by uncertainty, as businesses evolve to new sales models and small truckers enter and leave the market.”
According to the J.D. Power report, the average sleeper tractor sold in August was a little more than five and half years old, had 460,476 miles, and was purchased for $42,090. While the age was the same from July, the average truck had 9,727 (2.1%) fewer miles and brought in $2,408 (6.1%) more money. Looking at trucks two to five years of age, August’s average pricing was as follows:
- Model year 2019: $91,889; $4,090 (4.7%) higher than July
- Model year 2018: $74,188; $449 (0.6%) lower than July
- Model year 2017: $53,326; $3,730 (7.5%) higher than July
- Model year 2016: $39,492; $1,323 (3.5%) higher than July
“Since mid-June, we’ve seen an increase in selling prices for the lowest-mileage iron. In a typical used truck market recovery, pricing eventually increases for average mileage trucks as well, as the supply/demand relationship continues to move positive. This time around, the next few months will be anything but typical, so consider us cautiously optimistic at this point,” read the report.