Class 6 conventionals closed out 2014 on a high note, with the average wholesale price of a 4-7 year-old unit coming in at $20,206. This figure is $2,936 (or 16.9%) higher than November, and $2,435 (or 13.6%) higher than December, 2013. 

Looking at the year as a whole, 2014 outperformed 2013 by a large margin. The 12-month average for calendar year 2014 was $20,688 - $5,163 (or 33.3%) higher than 2013. Mileage was 10.2% lower in 2014, which would only partially account for the higher pricing. See graph below for detail.

Volume was the only measure to decrease in more recent periods. December 2014’s total for this cohort was 26 – 2 more than November, and identical to December 2013. 2014 as a whole substantially underperformed 2013, though, with 2014’s 12-month average coming in at 16.0 – a decrease of 25.7 units (or 61.6%) vs. calendar-year 2013. This substantial decline is partially explained by the fact that the model year range used in 2014 (2008-2011) includes two low-build years, while the range used in 2013 (2007-2010) only includes one. At the same time, if demand had been higher, we would have seen greater volume in 2014. Overall, though, the final two months of 2014 were moderately strong in volume.

As stated in last month’s edition of Guidelines, pricing for the 4-7 year-old cohort was stronger earlier in the year, following an arc that bottomed out near the 4th quarter. At the same time, pricing late in the year was notably higher than same-period 2013, pointing to greater demand. Economic conditions will continue to trend upwards for at least the next few quarters, strengthening the supply/demand relationship. Now is probably not a bad time to consider participating more heavily in this segment.