The last time we examined the Class 8 construction segment, we stated that “… stable pricing combined with higher volume generally suggests a strengthening market.” That trend continued through May, with our benchmark 2006-2009 model year trucks steadily increasing in value from their low point in the fall of 2013. This price movement puts this group essentially equal to where it was in early 2013, which is impressive considering that these trucks aged a year in that period. 

Looking at the market as a whole (all model years), pricing is up year-over-year in every mileage category save for one. This is further evidence of a stronger market.

As for volume, the number of 2006-2009 trucks sold has increased steadily on a year-over-year basis, averaging 41 trucks per month through May vs. 33 for the same period last year. The market overall has also expanded, with volume of all trucks sold averaging 109 per month through May vs. 73 for the same period last year.

As a side note, we use the 2006-2009 model years as a reference group because that’s where most of the volume is. Volume drops dramatically from the 2009 to 2010 model years. We will continue to monitor newer trucks and make valuation judgments where appropriate.