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The market for medium duty conventionals has been more stable through the first 6 months of 2015 compared to same-period 2014. Class 4 conventionals have generally fared better than Class 6’s, with our benchmark 4-7 year-old Class 4 group bringing about 23% more money than last year, and our Class 6 group bringing about 8% less. Average mileage is up about 3% for the Class 4 group and 9% for Class 6. Volume is down for both cohorts – by 33% for Class 4’s and 18% for Class 6’s.

In terms of specific numbers, the average 4-7 year-old Class 4 conventional wholesaled in June for $21,947 and had 109,096 miles. Pricing was $1,563 (or 7.7%) higher, and mileage was 6,259 (or 5.4%) lower month-over-month. Year-over-year, pricing was $6,094 (or 38.4%) higher, and mileage was 6,103 (or 5.9%) higher.

Our Class 6 cohort averaged $18,769 with 148,810 miles in June. Pricing was $5,267 (or 21.9%) lower month-over-month, and mileage was 22,016 (or 17.4%) higher. Year-over-year, pricing was $2,501 (or 11.8%) lower, and mileage was 41,759 (or 39.0%) higher.

Volume for both benchmark groups has been lower in 2015, due largely to the fact that this year’s analysis does not include the higher-build 2008 model year. Lower volume results in higher volatility month-over-month, which explains the swings we’ve seen this year. At the same time, 2-month average pricing – which smooths out volatility - is exhibiting less movement than last year. Class 4’s have been generally upward, while Class 6’s have been generally flat to downward. It is safe to say Class 4’s are recovering at a better rate than Class 6’s.

Increasingly positive consumer spending data should impact all segments of the medium duty market. We do not expect major changes from recent trends through the end of the year.