- Ryder sold a record 8,800 used trucks during Q3, up 66% YoY, and up 40% from Q2, according to Ryder's Q3 earnings presentation released on Wednesday.
- Proceeds per unit were down 11% for tractors and up 1% for trucks in the quarter, YoY, Ryder reported. But globally, from Q2 to Q3, proceeds per unit were up 14% for tractors and up 8% for trucks. And in the United States, proceeds per unit were up 9% from Q2 for tractors and trucks. Ryder officials said the larger sales revenue showed improving global economic conditions.
- The used-truck market improved faster than Ryder CEO Robert Sanchez expected, he told analysts on Wednesday. In Q2, he predicted the used-truck market would not recover until 2022.
Ryder is seeing record sales of its used trucks, a sign that the recovery from the recession is accelerating.
"An improved freight environment contributed to the stabilization of used vehicle and rental market conditions in the quarter," Sanchez said in the earnings release. Revenues are still down in Q3, YoY, but the pace of improvement is accelerating if sales revenue per unit is compared to sequential sales in Q2.
Analysts say surging freight demand will cause fleets to buy freight-hauling equipment. And used truck sales are on the rise because of a need for equipment from independent truckers.
"What we're seeing is owner-operators coming into the market and looking for primarily tractors but also straight trucks, as you continue to see the e-commerce space take off," said John Diez, Ryder president of Fleet Management Solutions. "You're seeing a lot of buyers that are coming in and gobbling up not just one but multiple assets at a time."
Other analysts said a rising freight market will cause equipment demands for new and used vehicles.
"Rising commercial vehicle demand forecasts represent a pulling-forward of cyclical expectations for economic activity,” said Kenny Vieth, ACT Research president and senior analyst, in a Thursday news release.
Vieth said low build rates mean 2021 Class 8 forecasts are reaching their "maximum potential." If OEMs max out in 2021, it follows demand for trucks already built — used trucks — could also rise. Whatever happens, Vieth said to buckle up and get ready for surge in the buying of equipment, as freight demand soars.
"Given already rising carrier profitability metrics and already strengthening orders, we would recommend the supply base should be planning for a strong demand uptick early next year," Vieth wrote. "When truckers make money, they buy equipment, and freight volume and rate metrics are pointing to a very strong carrier profitability environment heading into 2021."