Retail Pricing for Newer Trucks Stabilizes

Sleeper tractors retailed in July averaged mildly lower mileage than in recent months, pushing the month’s average pricing to the highest level since February. Performance of 3-5 year-old trucks tells a more accurate story, though, with 3 year-old models bringing lower pricing year-over-year despite much lower volume. At the same time, trucks of that age have stabilized in recent months after depreciating earlier in the year.

Looking at the market overall, the average used sleeper tractor retailed in July for $60,945, had 483,221 miles, and was 74 months old. Compared to June, this truck brought $1,288 (or 2.2%) more money, had 23,081 (or 4.6%) fewer miles, and was 2 months newer. Compared to July 2014, this average truck brought $178 (or 0.3%) more money, had 20,663 (or 4.1%) fewer miles, and was identical in age. See graph below for detail.

Narrowing focus to 3-5 year-old trucks, that cohort depreciated 1.3% month-over-month and 1.5% year-over-year.  3 year-old trucks have stabilized in the high-$70,000 range for the past two months, after depreciating moderately in the first 5 months of the year. There were notably fewer 3 year-old trucks sold in the first 7 months of 2015 than 2014 – 54.3% fewer, in fact. Also, the make/model supply is well mixed, with no single model overly impacting averages. As such, the lower pricing is likely demand-driven. See graph below for detail.

As always, feel free to add your observations about market conditions in the Comments section.