Average wholesale (auction plus dealer-to-dealer) pricing for 3-5 year-old sleeper tractors dipped 3.5% from April to May, with the majority of the decline driven by a group of low-priced 2012 ProStars. As in the retail segment, depreciation is becoming more model-specific, with the across-the-board hits no longer as severe.

Year to date, trucks of model years 2014-2012 have lost 13.6% of their value, for a monthly average of 2.7%. This figure is more than double the 1.2% average monthly depreciation in the same period of 2015. Further, trucks of this age cohort are bringing an average of $7,298 (or 13.6%) less money in 2016 than 2015.

In terms of individual model years, three-year-old trucks have lost 15.4% of their value since January, four-year-old trucks have lost 6.8%, and five-year-old trucks have lost 15.2%.

Monthly average depreciation of under 3% is outperforming our forecast of 4-5%. Another positive indicator is the increased differentiation in pricing for individual models. Both of these measures suggest the market may have absorbed the bulk of its depreciation. However, with the supply of used trucks continuing to outweigh demand, we expect price decreases in line with recent months going forward.