As we noted last month, the number of trucks sold through auction and dealer-to-dealer channels through July is running 6.6% ahead of the same period of 2014. Dealer-to-dealer sales were unusually strong in July, at 3.3 trucks per rooftop, which is the highest result since December of 2010.

Increased numbers of trades is the primary factor behind the increased sales volume. Dealers receiving large trade packages generally can’t absorb all those trucks into inventory for retail sale. In addition, in a maturing used truck market, trucks in inventory are increasingly realigned regionally to areas with higher demand.

This increased volume has not yet impacted pricing to any great extent. Three- and four-year old sleeper tractors are bringing essentially equal pricing year-over-year. Five-year-old sleepers are running substantially behind on average, but this is mainly due to the outsized impact of one specific make and model on the averages. Excluding that model, pricing for five-year-old sleepers is roughly on par with 2014. See graph below for detail.

Demand remains strong for late-model sleeper tractors. We should see increased dealer-to-dealer activity as trade packages continue to return, but we don’t foresee depreciation accelerating beyond our 1-2% per month forecast through the end of the year on average.

Stay tuned next week for deeper analysis in the September edition of Guidelines.