Following January’s 8.1% year-over-year decline in pricing, 3-5 year-old aerodynamic sleeper tractors plummeted another 12.9% in February. Year-over-year, 3-5 year-old sleepers are bringing 14.4% less in the first two months of 2016 than in the same period of 2015. See graph below for detail.

One caveat –the ProStar’s impact on the overall average has been outsized the past two months. That model performed unexpectedly well in January thanks to the inclusion of a number of sales of ISX-equipped trucks of model year 2014. Three-year-old ProStars with ISX power are performing comparably to other models. Unfortunately, there were no sales of 2014’s reported in February, dropping that model’s average back to a more typical level. Excluding the ProStar, month-over-month depreciation averaged 9.4%, and the year-over-year comparison shows January-February 2016 trailing same-period 2015 by 14.1%. Still substantial declines.

Most other models also declined fairly substantially. PACCAR MX-powered Kenworth T660’s and Peterbilt 587’s did not perform particularly well in February. Conversely, Freightliner Cascadias and Volvo 670’s lost less value than the competition, most likely due to the smaller volume of those models running through auction lanes in the early part of the year.

In general, it is likely that dealers are accepting lower offers for their retail units in order to move aging inventory. The steep devaluation in wholesale pricing of the third and fourth quarter of 2015 is spilling over to the retail channel to a greater extent as we close out the first quarter of 2016.