Ryder used vehicle prices decline, projected to bottom out in 2024

Despite the drop, the transportation company saw pricing not slide as much as expected, CEO Robert Sanchez said on an earnings call.

Ryder reformulated accounting in 2019 and 2020 for how to value its inventory to address volatility risk, and that’s benefiting the company as the outsized returns of the pandemic era continue to normalize.

Ryder is not alone in facing price declines. Used Class 8 vehicle prices dropped 26% on average in June compared to 2022, according to a July 26 used Class 8 sales report by ACT Research .

In a similar issue regarding the changing market, ACT Research VP Steve Tam noted that used Class 8 vehicle retail sales increased 1.8% from May to June, rather than the usual increase of 4% to 5%. “In the context of the current freight market, and amid all the press regarding fleets going out of business, it may seem a little counterintuitive,” he said.

At the same time, as many carriers exit the market, others are taking advantage of the chance to snatch up used truck inventories.

“In addition to the churn, more inventory is affording carriers an opportunity to refresh their fleets with younger used trucks,” Tam said.

Meanwhile, 2023 order books for new Class 8 tractors are closed, FTR recently reported, which includes for OEMs such as Paccar. That could be putting pressure on aging fleets unable to wait for OEM backlogs to resolve.

“The markets continue to be healthy for us around the world,” Paccar CEO Preston Feight said on a Q2 earnings call. “There are some sectors out there that are exceptionally good. That’s LTL, vocational and otherwise, and demand is expected to be strong.”