However, the trade-off may not be simply based on price. James Hebe, chief executive of truck-making giant Freightliner Corp., thinks the demand is so strong that such a large supply of used vehicles will not affect new truck sales immediately. He said new truck manufacturers still cannot produce enough trucks to satisfy demand, and used trucks will meet part of that need. Freightliner claims about a third of the Class 8 retail market, about twice as much as its strongest competitor, Navistar. It is also the leader in the used truck business.
Many manufacturers operate their own used vehicle sales and service organizations.
However, precise information on market shares in used trucks is elusive because of the different resale approaches taken by the companies. A number of manufacturers, Freightliner included, sell and service a variety of brands taken in trade. Others, like Volvo, sell only their models and use outside dealers to move competing brands. The principal reason most observers give for the strong sales of new trucks is the growing demand for freight service. Analysts also cite shorter replacement cycles, which to some extent are related to the greater need for service.