The Class 4 Conventional segment showed strength in March, with average wholesale pricing for 4-7 year-old units coming in at $17,581 - $2487 (or 14.1%) higher than last month, and $3274 (or 18.6%) higher than March 2013. Average mileage was 98,745 – 16,499 (or 14.3%) lower than February, and 9492 (or 8.8%) lower than March 2013.

On a quarter vs. quarter basis, Q1 2014 saw higher pricing than Q4 2013, at $16,005 vs. $13,322, respectively. Mileage in Q1 2014 was mildly lower than the previous quarter, at 105,307 vs. 108,282. Q1 2014 was slightly better than Q1 2013, with a $776 (or 4.8%) improvement in price despite a 6708 (or 6.4%) increase in mileage.

This higher pricing is encouraging, but keep in mind the moderately lower mileage this month is partly responsible for the price increase vs. last month. Also, and more importantly, the volume of trucks reported sold in this segment has remained in the 40-50 unit range each month, down about 25 units from the 2012 average. 

Given these results, we continue to view the Class 4 segment as gradually improving. As this segment touches a wide variety of economic segments, we expect results in upcoming months to roughly track the gradual improvement in the domestic economy overall.