The average sleeper tractor sold wholesale (auction, dealer-to-dealer, and dealer-to-wholesaler combined) in July was 84 months old, had 618,402 miles, and brought $29,705. Compared to an unusually strong June, trucks sold in July were 9 months older, had 34,148 (or 5.8%) more miles, and brought $4,877 (or 14.1%) less money. Compared to July 2015, trucks sold this month were one month older, had 5,494 (or 0.9%) more miles, and brought $5,830 (or 16.4%) less money. June’s results were bolstered by a strong mix of higher-priced models, while trucks sold in July were generally more in line with previous months. See graph below for detail.

Focusing on trucks three to five years of age, average wholesale pricing for this group was $41,144 - a mere $582 (or 0.7%) lower than June. Average mileage for this group was 507,303 – 8,693 (or 1.7%) lower than June. Compared to July 2015, trucks sold this month had 66,269 (or 13.1%) more miles, and brought $10,936 (or 21.0%) less money.

Average pricing by model year was as follows:

MY2014: $51,859 - $2,895 (or 5.9%) higher than June

MY2013: $36,555 – $9,309 (or 20.3%) lower than June

MY2012: $35,018 - $4,669 (or 15.4%) higher than June

See graph below for detail.

Since January, trucks three to five years of age have lost about $10,000 (or 20%) of their value, which translates to just under 3% per month – slightly better than our early forecasts of 3-5% per month. In terms of individual model years, 2014’s have lost about 23% of their value since January, 2013’s have lost about 11%, and 2012’s have lost about 21%. A four-year-old truck with mileage in the 400,000 range still seems to be the sweet spot in terms of value retention. This truck is averaging in the high-$30’s, and still has a few years of long-haul service before an overhaul is needed. 

With the returning supply of used trucks a relatively known quantity, it looks like monthly depreciation through the end of the year should average out to the lower end of our 3-5% per month rule of thumb.

Stay tuned for the July auction recap early next month.