Auction volume of our benchmark group of sleeper tractors was similar overall to November, with a large volume of 2011 Cascadias sold through one auction company balanced out by lower volume of other models, model years, and auction locations. See graph below for detail.

Specific auction performance of our benchmark model was as follows:

MY2013: $30,992 average; $6,508 (or 17.4%) lower than November

MY2012: $27,768 average; $3,340 (or 13.7%) higher than November

MY2011: $24,966 average; $1,348 (or 5.7%) higher than November

Depreciation generally accelerated in the second half of 2016. From January to December, trucks of model year 2013 lost about 22% of their value, trucks of model year 2012 lost about 37%, and trucks of model year 2011 lost about 32%. These figures translate to an overall monthly loss of about 2.5%, which beats our early estimate of 3-5% per month. This figure is also better than the nearly 5% average monthly loss in the second half of 2015, but of course selling prices are roughly 30% lower today than they were then. See graph below for detail.

Based on the expected returning supply of the industry’s most popular sleeper tractors, plan for continued substantial supply and downward pressure on pricing throughout 2017.