The volume of the three most common sleeper tractors selling at auctions decreased notably in July. Pricing for our benchmark model ticked upward. The auction channel is still represented mainly by the four to six year-old cohort. There have not been many trucks three years of age sold to date.

Specific auction performance of our benchmark model was as follows:

MY2013: $37,773 average; $1,588 (or 4.4%) higher than June

MY2012: $34,261 average; $2,011 (or 6.2%) higher than June

MY2011: $31,914 average; $1,314 (or 4.3%) higher than June

Looking at the year-to-date trend, trucks of model year 2013 have lost about 18% of their value, trucks of model year 2012 have lost about 16% of their value, and trucks of model year 2011 have lost about 15% of their value. These figures translate to an overall monthly loss of less than 3%, which is substantially better than the nearly 5% average monthly loss in the second half of 2015. Of course, trucks auctioned in the fourth quarter of 2015 were bringing an average of 16% more money than trucks sold in the second quarter of 2016.

Looking forward, we continue to expect an increased number of trucks coming off-lease in the third quarter, then fall in the fourth. We expect another first-quarter increase in 2017. See graph below for detail.