Volume and pricing of our benchmark model decreased notably in May. Pricing of this model was 10.1% lower month-over-month on average, which is a major change from the flat pricing seen in the first quarter and April.

May auction performance of our benchmark model was as follows:

MY2013: $28,027 average; $3,667 (or 11.6%) lower than April

MY2012: $24,935 average; $1,379 (or 5.2%) lower than April

MY2011: $20,608 average; $3,202 (or 13.4%) lower than April

May’s disappointing results increased monthly depreciation averages. In the first five months of the year, trucks of model year 2011 averaged 2.7% depreciation per month, trucks of model year 2012 depreciated 1.1% per month, and trucks of model year 2013 essentially lost no value in this period.

A late spring/summer lull in sales volume is not unusual, and given the lack of change in any trucking-focused economic measures, we are not considering May’s results indicative of a market shift. We continue to view the auction market as firming up as pricing finds its low point.