High Volume and Low Specs Keeps Depreciation Elevated

Class 8 auction selling prices are now roughly at the midpoint of 2018 (strong) and 2019 (weak) levels, while retail pricing is still roughly at parity with 2018 (in real numbers). Substantial numbers of off-lease trucks - most with high mileage and basic specs - continue to cycle through the market.

We expect conditions to remain similar through the end of the year, with depreciation moderating somewhat in the late fourth quarter but not returning to normal levels until the second quarter of 2024.