Class 8 auction pricing continues to flatten out despite higher volume. This trend suggests the market is finding a bottom.

Volume of our benchmark model was up slightly in April, just edging out March for the highest result in 13 months. Pricing of this model was 0.3% lower month-over-month on average, which is much better than our 1.5%-2.0% estimate for 2017.

April auction performance of our benchmark model was as follows:

MY2013: $31,443 average; $251 (or 0.8%) higher than March

MY2012: $26,314 average; $208 (or 0.8%) lower than March

MY2011: $23,810 average; $323 (or 1.3%) lower than March

Our benchmark model has lost very little value in the first four months of the year. Trucks of model year 2011 have averaged 1.5% depreciation per month, trucks of model year 2012 have depreciated 0.3% per month, and trucks of model year 2013 have actually gained 12.2%. Combined with the higher volume in March and April, we view these flat to upward pricing results positively. It is looking more likely that auction pricing has hit bottom.

See graph below for detail.