Used Truck Sales Drop 16 Percent as Prices Rise

Used truck sales fell 16 percent in October from the previous month, while orders for new heavy trucks surged 24 percent from September.

The drop in used truck sales is most likely tied to rising prices and a limited pool of available low-mileage used vehicles, according to ACT Research.

The average price of a used truck climbed 4 percent from September to October, the Columbus, Ind., research firm said in its latest report on the used vehicle market.

"Tighter supplies of equipment of all sizes continue to be a boon for selling prices," said Steve Tam, vice president of commercial vehicle sector with ACT Research.

Rising used truck prices and a limited supply of newer vehicles could herald further tightening of truck capacity in 2011.

The surge in new truck orders and the drop in used vehicle sales indicate truck operators are staying away from older trucks that would require more maintenance and emit more pollutants than recent models.

As the average age of a Class 8 tractor in the U.S. moves higher, hitting 6.7 years in 2010, buyers are willing to pay more for late-model used equipment.

"With the focus on late-model equipment, the average miles for Class 8 units sold were down 13 percent month-over-month" in October, Tam said.

Orders for new Class 8 tractors hit their second highest level in two years in October, rising 24 percent month over month.

Most of those orders are for replacement vehicles, and won't expand the freight-hauling capacity available to shippers, ACT Research said.

"We've started a process of capacity shortfall," said Kenny Vieth, president and partner at ACT Research. "We see below replacement retail sales continuing through the first half of 2011."

-- Contact William B. Cassidy at wcassidy@joc.com.