April 4, 2016

“Some Truck segments are facing the inevitable. Half of all truck segments declined at a higher rate than the Luxury Car segment, the cars worse performing weekly segment.“

Anil Goyal, Senior Vice President of Automotive Valuation and Analytics

Model Years: 2007-2013, Volume Weighted Wholesale Average Values, Weekly Change from 3/25/16 to 3/31/16

Peak of the Season, mid-March thru mid-April

Volume-weighted, overall car values decreased by only 0.04% last week. The week ending March 13,

2015 had the same depreciation rate, and was then followed by four weeks of positive adjustments.

Sporty and Compact car segments have received four straight weeks of improved week to week

retention. The Compact segment had its highest retention rate since the week ending March 20, 2015.

Volume-weighted, overall truck values decreased by 0.3% last week. This is well below the same week

last year at +0.26%, but consistent with the previous four weeks average depreciation rate of 0.33%.

Trucks have received higher depreciation rates than cars for three weeks in row. The overall truck

average has a three week depreciation rate of -0.35% compared to the cars -0.13%.

-$10-0.18%

+$27+0.40%

-$15-0.18%

-$14-0.15%

-$12-0.08%

-$55-0.32%

-$86-0.29%

+$7+0.05%

-$29-0.09%

-$4CARS

-0.04%

-0.4%

-0.2%

0%

+0.2%

+0.4%

WEE

KLY

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AN

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$00%

-$70-0.62%

-$18-0.13%

-$71-0.41% -$92

-0.48%

-$68-0.34% -$109

-0.43%

-$7-0.07%

$00%

-$17-0.14%

-$59-0.47%

-$28-0.17%

-$44TRUCKS-0.30%

-0.7%

-0.5%

-0.3%

-0.1%

WEE

KLY

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2

April 4, 2016

Sentiment from the Auction Lanes

Our editors and personnel attend about 60 auctions every week across the country to provide key insights:

“Buyers in this location seem to have plenty of money and are spending. Everything is selling well today.” David from PA

“Very strong sale today with vehicles in most all segments bringing good money.” Mark from CA

“Most dealers I spoke with today indicated that the need for vehicles was great and even though prices were high they were still buying.” Gene from PA

“Good sale today with prices holding steady compared to last week.” Frank from AZ

With the above chart, you can see a comparison for the month of March 2015 and 2016. Although the overall weekly depreciation rates have fallen each week in March this year, the 2016 monthly average is down considerably in each segment from 2015.

Vehicle Highlight

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equipped with a 3.6L V6 engine paired with a 9-speed automatic transmission.

Competition Includes: Honda Odyssey, Toyota Sienna, Kia Sedona and Nissan Quest

3

April 4, 2016

Auction Prices Strong at the Top End “There has been some chatter in collectible car circles recently, especially after the

Arizona and Retromobile auctions, that the market was either ‘in decline’ or

‘leveling off’. The Amelia Island results show that the market is still very strong at

the top end, especially for the ‘best of the best’ examples.”

Eric Lawrence, Director of Specialty Markets

The auctions held in conjunction with the Amelia Island Concours d’Elegance have been getting bigger every year. This year’s combined sales of $134,000,000 confirm that Amelia has earned a spot in the “big leagues” with Scottsdale and Pebble Beach. Gooding led the way with just over $60,000,000 in sales, including $22,000,000 for fifteen Porsches from Jerry Seinfeld’s collection. RM came in second with roughly $39,000,000, and Bonhams rounded out the top three with a total of just under $28,000,000. All three sales were well attended and produced sell throughs of 88%, 87%, and 68%.

Perhaps struggling for attention during the jam-packed event, Motostalgia’s and Hollywood Wheels’ auction results were not quite as robust, with sales of roughly $3,000,000 and $5,000,000.

Notable Sales Include:

1962 Ferrari 400 Superamerica $4,000,000 (RMS)

1984 Ferrari 288 GTO $2,585,000 (RMS)

1966 Ford GT40 $3,000,000 (Gooding)

1961 Ferrari Cal Spyder SWB $17,160,000 (Gooding)

1955 Porsche 550 Spyder $5,335,000 (Gooding)

1937 Bugatti 57 Sports Tourer $9,735,000 (Bonhams)

1960 Maserati Vignale Spyder $880,000 (Bonhams)

1989 Porsche 911 Speedster $205,000 (HW)

2006 MB SLR McLaren Coupe $313,000 (Moto)

Photo Courtesy RM Sotheby’s

36500

37000

37500

38000

38500

39000

39500

40000

40500

41000

41500

American Muscle Cars 1964-72

SPECIALTY MARKETS:

COLLECTIBLE CARS

4

April 4, 2016

Powersports Market Enters Prime Selling Season “As expected, prices spring forward this month as the Powersports market

enters its prime selling season; however, continuing a trend that dates back

nearly a year, the increases were once again on the modest side.”

Scott Yarbrough, Motorcycle & Powersports Editor

Among the on road bikes, and in a reversal from last month, Cruisers (up 2.2%) are the biggest

gainers this time, with Street Bikes (up 2.0%) following closely behind.

Within the Cruiser segment one peculiar item to note is that recent (2013 and newer) V-Twin

units are up a little over 3%, while older ones are only up about 1%.

Dual Sports and Scooters are both up by 1.9%.

Among the off road segments, ATVs are up the least with a modest increase of 0.8%, while Utility

Vehicles, always a steady performer, are up a full percentage point more at 1.8%.

The Personal Watercraft and Jet Boat segments outperformed the motorcycles by a small

amount and increased in value by 2.5% and 2.3% respectively.

Snowmobiles have begun their off-season declines in value and have dropped by 2.8 % versus

last month.

0.80%

2.20% 2.30%

1.30%

1.90% 1.90%

-2.80%

2.00% 1.80%

2.50%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%Motorcycle & Powersports Percent Change March to April 2016

SPECIALTY MARKETS:

POWERSPORTS

5

April 4, 2016

RV Values and Volume Starting to Heat Up

“The weather has finally started to improve, and the performance of RVs at

auction has followed suit. Motorized and towable units have once again moved

in the same direction, which would not be noteworthy were it not for their erratic performance for much

of 2015. Although both major market segments improved, motorhomes’ less than one percent increase

can be largely attributed to a surprising quantity of below-average to rough condition units that were

sold at auction last month. The coming months should see sales improve substantially.” Eric Lawrence, Director of Specialty Markets

For Motor Homes (including Class A, B, and C)

Average selling price was $35,124, up $222 (0.6%) from previous month

One year ago, the average selling price was $36,732

Auction volume was up 16% from previous month

For Towables (including Travel Trailers, Fifth Wheels, and Camping Trailers)

Average selling price was $11,948, up $1,126 (10.4%) from previous month

One year ago, the average selling price was $11,012

Auction volume was up 42% from previous month

30000

32000

34000

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Motor Home Value Trends

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Travel Trailer and Fifth Wheel Value Trends

SPECIALTY MARKETS:

RECREATIONAL VEHICLES

6

April 4, 2016

Buyers and Auctions did well in March

“Normal depreciation has settled in for most Heavy Duty segments.”

Charles Cathey, Editor – Heavy Duty Truck Data

The majority of Heavy Duty Trucks being sold at auction are Over the Road

Tractors. Their values have dropped and are possibly settled in at a rather normal depreciation rate. This is the case

for Late Model as well as the 2012-2005 year models, although 2005’s and 2006’s are dropping less than other year

models. Construction/Vocational Heavy Duty Trucks are the exception to this downward trend. They are holding

their values very well, and some of them are actually appreciating in value, with Dump Trucks and Roll-Offs leading

this strong value retention. Please take a look at the numbers below, and check back with us next month, as we

continue to monitor Heavy Duty Truck values.

DATE

Constructional/Vocational Over the Road Trucks & Tractors Regional Tractors

MODEL YEARS Value $ Change % Change Value $ Change % Change Value $ Change

% Change

04/01/16 78,973 -544 -0.7% 66,627 -891 -1.3% 57,462 -1069 -1.8% 2013-2014

03/01/16 79,517 -581 -0.7% 67,518 -1039 -1.5% 58,531 -979 -1.6% 2013-2014

2013-2014 HD Construction/Vocational segment dropped an average of $544 (0.7%) in March compared to the average decline of $581 (0.7%) in February.

2013-2014 HD Over the Road Tractor segment dropped an average of $891 (1.3%) in March compared to the average drop of $1,039 (1.5%) in February.

2013-2014 HD Regional Tractor segment dropped an average of $1,069 (1.8%) in March compared to the average depreciation of $979 (1.6%) in February.

DATE

Constructional/Vocational Over the Road Trucks & Tractors Regional Tractors

MODEL YEARS Value $ Change % Change Value $ Change % Change Value $ Change

% Change

04/01/16 38,361 -232 -0.6% 32,215 -418 -1.3% 24,192 -406 -1.6% 2005-2012

03/01/16 38,593 -266 -0.7% 32,633 -383 -1.2% 24,598 -384 -1.5% 2005-2012

2005-2012 HD Construction/Vocational segment dropped an average of $232 (0.6%) in March compared to the $266 (0.7%) in February.

2005-2012 HD Over the Road Tractor segment dropped an average of $418 (1.3%) in March compared to the $383 (1.2%) average deprciation in February.

2005-2012 HD Regional Tractor segment dropped an average of $406 (1.6%) in March compared to the average drop of $384 (1.5%) in February.

-$5,000

-$4,000

-$3,000

-$2,000

-$1,000

$0

+$1,000

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Average Wholesale Value Changes (Late Model)

Constructional/Vocational Over the Road Trucks & Tractors Regional Tractors

SPECIALTY MARKETS:

HEAVY DUTY

7

April 4, 2016

One trend continues, while another one changes direction

“The smaller decline trend continues for the Medium Duty Segment, but the

downward trend for diesel has reversed.”

Bret Swanson, Editor – Medium Duty Truck Data

In the Medium Duty market, the rate of decline continues to slow. The 2005-2012 model years came down

on average, $114 or 0.6%. In February, that average decline for this group was, $178 or 1.0%. The 2013 &

2014 model years had similar declines. The average amount of decline was $335 or 0.8% for March, and in

February, that average decline was $360 or 0.9%.

This past month, we saw diesel fuel prices change course. The average price per gallon has moved back

above the $2.00 mark. The national average now stands at $2.12 per gallon. On the bright side, that is still

$.70 better that last year’s $2.82 per gallon.

1745 N. Brown Rd., Suite 130, Lawrenceville, GA 30043| 1.866.452.1400

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+$0.00+$0.02

+$0.08+$0.03

+$0.01

-$0.70-$0.75

-$0.82

-$0.92-$0.95-$1.00

-$0.80

-$0.60

-$0.40

-$0.20

$0

+$0.20

03/28/1603/21/1603/14/1603/07/1602/29/16

Diesel Price Changes

Change/Week Change/Year

SPECIALTY MARKETS:

MEDIUM DUTY

Value $ Change % Change

04/01/16 18,460 -114 -0.6% 2005-2012

03/01/16 18,574 -178 -1.0% 2005-2012

MODEL

YEARSDATE

Medium Duty

Source: EIA