Starting with Class 3-4 cabovers, average pricing in 2016 was very similar to 2015, but the path to that average was quite different. 2015 was more volatile, with lower volume. 2016 saw relatively heavy depreciation in the first half of the year, with stability in the second half.
Our benchmark group of 4-7 year-old Class 3-4 cabovers averaged $14,055 in November, for a $669 (or 5.0%) increase over October. Year-over-year, November 2016 was $727 (or 5.5%) higher than November 2015. Year-to-date, 2016 should come in roughly 2% lower than 2015. The 2016 12-month average should come in essentially equal to last year, at roughly $15,600.
Monthly depreciation for this group should average about 2% once December’s data is factored in. This figure is in line with historical norms, and similar to last year. A substantially higher volume of trucks sold in 2016 combined with similar year-over-year pricing points to a relatively healthy market. Economic conditions support strength in the markets these trucks serve. See graph below for detail.