As we mentioned in this month’s Guidelines market update, depreciation in the auction lanes has been very mild since December. It is becoming increasingly evident that retail pricing is following suit. In the first four months of 2017, retail selling prices for sleeper tractors three to five years of age have dropped an average of 1.9% per month. This figure compares very favorably to the 3.5% per month average in the first four months of 2016.

Average pricing by age was as follows:

3 year-old trucks: $75,051 - $4,507 (or 5.7%) lower than March

4 year-old trucks: $60,583 – $929 (or 1.6%) higher than March

5 year-old trucks: $44,900 - $184 (or 0.4%) higher than March

Due to the varying mix of makes and models sold each month, we are not particularly concerned with up or down swings in each model year on average. It is more instructive to look at multi-month trends in the averages, and of course selling prices of individual models over time. These measures indicate the retail market took the worst of its depreciation hits last year, and is now starting to level out.