June 3, 2019

“The depreciation rates normalized last week after a strong spring market. Pickups continued to show strength in values.”

Anil Goyal, Executive Vice President, Operations

Model Years: 2011-2017, Volume Weighted Wholesale Average Values, Weekly Change from 5/24/19 to 5/31/19

Pickups Retain Strength

• Volume-weighted, overall car segment values decreased by just 0.31% last week. In comparison, the

market values had decreased only by 0.05% on average during the prior 4-week period.

• In cars, the values of Prestige Luxury Cars decreased the most.

• Volume-weighted, overall truck segment (including pickups, SUVs, and vans) values decreased by just

0.08% last week. In comparison, the market values were up by 0.03% on average during the prior

4-week period.

• In trucks, the values of Pickups increased the most.

-$22-0.35%

-$32-0.38%

-$22-0.23%

-$9-0.07%

-$53-0.34%

-$91-0.49%

-$224-0.67%

-$19-0.12%

-$156-0.40%

-$35CARS

-0.31%

-0.8%

-0.6%

-0.4%

-0.2%

0%

WEE

KLY

CH

AN

GE

+$18+0.15%

-$25-0.20%

-$46-0.29%

-$13-0.06%

-$19-0.12% -$63

-0.32%-$73

-0.34%

-$32-0.10% -$31

-0.23%

-$80-0.84%

-$1-0.01%

+$81+0.47% +$44

+0.22%

-$14TRUCKS-0.08%

-1.2%

-0.8%

-0.4%

0%

+0.4%

+0.8%

WEE

KLY

CH

AN

GE

2

June 3, 2019

Sentiment from the Industry Key comments from industry observers:

“Consignment has been low which would normally result in high sales percentages,

but lower retail demand has had an effect.” Mark in MI

“We had a good sale this week. However, some of the franchise dealers mentioned

slow retail sales.” Gerry in FL

“More no-sales and the values seem to be slipping a bit.” Bret in SC

“All but one of the commercial consignors reported good sales today.” Bob in MA

“The southern California market remains good with the bank/repo lanes performing the best today.” Mark in CA

Days Supply Full-Size Pickups

Source: Black Book Visual Analytics

Days Supply for Full-Size Pickups is at a 4-year high. While used pickup values remain high, incentives are likely to

increase due to high supply which would in turn impact used values.

Vehicle Highlight 2019 Nissan GT-R NISMO is equipped with a 3.8-liter twin-turbo V6 engine producing 600 hp/481 lb-ft of torque paired with a 6-speed dual clutch automatic transmission, powering all 4 wheels. Hence the name, this trim gets the NISMO treatment which includes a competition-tuned suspension by Bilstein, an Aero Package and Recaro seats with Alcantara accents in the cockpit. MSRP with

destination starts at $177,235 and the key competitors include the Jaguar F-Type R, Porsche 911 GT3 and Chevrolet Corvette ZR1.

This week’s report includes our Monthly Edition Supplement on Specialty Markets.

3

June 3, 2019

Steven Juliano Collection Stars at Mecum’s Spring Classic “This has been a great year so far for collectible vehicle auctions, and the two most

recent sales did not disappoint. Mecum’s six-day Indy sale was huge and featured

several of the top muscle cars in the world, while RM Sotheby’s Villa Erba sale

offered some of the best European sportscars from the 1950s, the golden age of amateur racing.

Attendees at both sales were treated to some of the finest automobiles in the world.”

Eric Lawrence, Principal Analyst - Specialty Markets

• Mecum’s 32nd Original Spring Classic, held recently in Indianapolis, Indiana, was very successful, with final sales coming in at just over $70,000,000, a record for that venue. Leading the way were offerings from the Steven Juliano Estate Collection, consisting primarily of “best in the world” Shelby Cobras and Mopar muscle cars.

• RM Sotheby’s Villa Erba sale, held on the shores of Lake Como, Italy in conjunction with the prestigious Concorso d’Eleganza Villa d’Este, was also quite successful, grossing over $22,000,000 on a docket heavy with vintage European sports cars in pristine condition. Both top selling cars (see below) had an extensive in period racing history and are eligible for all significant historic racing and concours events.

Notable Recent Auction Sales Include:

1967 Shelby Cobra 427 S/C $2,860,000 (Mecum)

1966 Shelby Cobra 427 (Street) $2,420,000 (Mecum)

2015 Porsche 918 Spyder Weissach $1,980,000 (Mecum)

1970 Plymouth Hemi Cuda Convertible $1,980,000 (Mecum)

1964 Shelby Cobra 289 Roadster $1,760,000 (Mecum)

1971 Plymouth Cuda Conv 440 6 Bbl $1,155,000 (Mecum)

1954 Ferrari Mondial Spider $4,150,000 (RM Sotheby’s)

1957 Porsche 550A Spyder $3,775,000 (RM Sotheby’s)

1965 Aston Martin DB6 Volante $2,000,000 (RM Sotheby’s)

1955 Fiat 8V Coupe $1,975,000 (RM Sotheby’s)

Shelby Cobra 427. Courtesy of Mecum Auctions.

35000

36000

37000

38000

39000

40000

41000

42000

43000

44000

Jan

/Feb

20

14

Mar

/Ap

r 2

01

4

May

/Ju

n 2

01

4

July

/Au

g 2

01

4

Sep

t/O

ct 2

01

4

No

v/D

ec 2

01

4

Jan

/Feb

20

15

Mar

/Ap

r 2

01

5

May

/Ju

n 2

01

5

July

/Au

g 2

01

5

Sep

/Oct

20

15

No

v/D

ec 2

01

5

Jan

/Feb

20

16

Mar

/Ap

r 2

01

6

May

/Ju

n 2

01

6

July

/Au

g 2

01

6

Sep

/Oct

20

16

No

v/D

ec 2

01

6

Jan

/Feb

20

17

Mar

/Ap

r 2

01

7

May

/Ju

n 2

01

7

July

/Au

g 2

01

7

Sep

/Oct

20

17

No

v/D

ec 2

01

7

Jan

/Feb

20

18

Mar

/Ap

r 2

01

8

May

/Ju

n 2

01

8

July

/Au

g 2

01

8

Sep

/Oct

20

18

No

v/D

ec 2

01

8

Jan

/Feb

20

19

Mar

/Ap

r 2

01

9

May

/Ju

ne

20

19

American Muscle Cars

SPECIALTY MARKETS:

COLLECTIBLE CARS

4

June 3, 2019

RV Values Increase At Auctions As Summer Arrives

“As we make the transition from the end of spring to the beginning of summer,

interest in used RVs remains strong. Dealers are reporting good traffic on their

lots and websites, and the auction companies have seen their volumes rise a significant amount.

Motorized units are up for their fourth consecutive month, while travel trailers and fifth wheels, led by

the lighter, easier to tow models, have increased five out of the past six months.” Eric Lawrence, Principal Analyst - Specialty Markets

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

• Average selling price was $42,879, up $111 (0.3%) from the previous month.

• One year ago, the average selling price was $42,591.

• Auction volume was up 36% from the previous month. The average model year was 2011.

For Towables (including Travel Trailers and Fifth Wheels)

• Average selling price was $14,333, up $756 (5.5%) from the previous month.

• One year ago, the average selling price was $13,792.

• Auction volume was up 15% from the previous month. The average model year was 2010.

30000

35000

40000

45000

50000

55000

Jan

-15

Feb

Mar

Ap

rM

ayJu

ne

July

Au

gSe

pt

Oct

No

vD

ec

Jan

-16

Feb

Mar

Ap

rM

ayJu

ne

July

Au

gSe

pt

Oct

No

vD

ec

Jan

-17

Feb

Mar

Ap

rM

ayJu

ne

July

Au

gSe

pO

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ov

De

cJa

n-1

8Fe

bM

arA

pr

May

Jun

eJu

lyA

ug

Sep

Oct

No

vD

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Jan

-19

Feb

Mar

Ap

r

Motor Home Value Trends

9000

10000

11000

12000

13000

14000

15000

16000

Jan

-15

Feb

Mar

Ap

rM

ayJu

ne

July

Au

gSe

pt

Oct

No

vD

ec

Jan

-16

Feb

Mar

Ap

rM

ayJu

ne

July

Au

gSe

pt

Oct

No

vD

ec

Jan

-17

Feb

Mar

Ap

rM

ayJu

ne

July

Au

gSe

pO

ctN

ov

De

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n-1

8Fe

bM

arA

pr

May

Jun

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Sep

Oct

No

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ec

Jan

-19

Feb

Mar

Ap

r

Travel Trailer and Fifth Wheel Value Trends

SPECIALTY MARKETS:

RECREATIONAL VEHICLES

5

June 3, 2019

Powersports Market Enters Summer On A High Note “As we near the high point of the year for the Powersports market, values are up nearly across the board, but by fairly modest amounts in most segments this month.”

Scott Yarbrough, Senior Analyst - Motorcycle & Powersports

• June is traditionally the month where we see the highest values in the Powersports wholesale market as summer is officially underway, and motorcycles, scooters, and watercraft are in high demand. The normal pattern is for values to peak right around the Fourth of July, with a gradual decline starting immediately after. We bring this up because June normally sees rather substantial increases in value from May, but that is not the case this month. While values are up nearly across the board, it is by modest amounts in most cases. This raises the question: will values peak as usual in early July, or will they perhaps increase a bit more next month?

• Our biggest movers this month are the water-based segments; the Jet Boats are up 3.0% and Personal Watercraft are up a touch less at 2.7%. Closely following these two are the Off-Road and Street Bike segments, each up a little less than two percent.

• The Cruisers are a bit of a mixed bag, with the metric models lagging behind the domestics. Metric units are up 0.7%, while the domestic V-Twins are up 1.4%. Within the domestics, the entry level bikes continue to be exceptionally strong, with some models rising by nearly 4%, and this month the Touring bikes have made some additional gains, rising roughly 1.8% on average.

-0.4%

1.0% 0.7%1.4%

3.0%

1.9%

-0.1%

1.0%

-1.8%

1.8%

0.6%

2.7%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%Motorcycle & Powersports Percent Change May to June 2019

SPECIALTY MARKETS:

POWERSPORTS

6

June 3, 2019

Heavy Duty Segments Show Signs of Life

“Higher mileage units continue to enter the market while demand remains

steady, leaving buyers with no option but to purchase less desirable units.”

Andrew Floto- Automotive Analyst

• Both Over-The-Road and Regional Tractors showed less depreciation last month compared to April while Construction units remained flat.

• Most auctions reported lower sales volume in May, while the average price of sold units looks to be on the

rise.

• A strong economy is assumed to be driving strong demand, and with supply dropping last month, buyers

had to pay up to fulfill their needs.

DATE

Construction/Vocational Over the Road Trucks & Tractors Regional Tractors MODEL

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

06/01/19 94,090 -654 -0.7% 74,970 -1,220 -1.6% 65,705 -1,088 -1.6% 2016-2017

05/01/19 94,744 -644 -0.7% 76,190 -1,420 -1.8% 66,793 -1,259 -1.8% 2016-2017

• 2016-2017 HD Construction/Vocational segment decreased an average of $654 (0.7%) in May, compared to

the average drop of $644 (0.7%) in April.

• 2016-2017 HD Over the Road Tractor segment dropped an average of $1,220 (1.6%) in May, compared to the average drop of $1,420 (1.8%) in April.

• 2016-2017 HD Regional Tractor segment dropped an average of $1,088 (1.6%) in May, compared to the average depreciation of $1,259 (1.8%) in April.

DATE

Construction/Vocational Over the Road Trucks & Tractors Regional Tractors MODEL

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

06/01/19 48,141 -356 -0.7% 32,605 -579 -1.7% 25,234 -493 -1.9% 2008-2015

05/01/19 48,496 -408 -0.8% 33,184 -659 -1.9% 25,727 -525 -2.0% 2008-2015

• 2008-2015 HD Construction/Vocational segment dropped an average of $356 (0.7%) in May, compared to

the $408 (0.8%) average depreciation in April.

• 2008-2015 HD Over the Road Tractor segment dropped an average of $579 (1.7%) in May, compared to $659 (1.9%) average depreciation in April.

• 2008-2015 HD Regional Tractor segment dropped an average of $493 (1.9%) in May, compared to the average drop of $525 (2.0%) in April.

-$800

-$700

-$600

-$500

-$400

-$300

-$200

-$100

$0

Mo

nth

ly C

han

ge

Average Wholesale Value Changes (Market)

Construction/Vocational Over the Road Trucks & Tractors Regional Tractors

SPECIALTY MARKETS:

HEAVY DUTY

7

June 3, 2019

Continued Stablitiy for Class 7 Units “Steady volume is helping keep downward pressure on the overall market as used

prices continue to depreciate.” Josh Giles - Principal Automotive Analyst

DATE

Medium Duty MODEL YEARS

DATE

Medium Duty MODEL YEARS Value $ Change % Change Value $ Change % Change

06/01/19 47,343 -548 -1.1% 2016-2017 06/01/19 20,368 -333 -1.6% 2008-2015

05/01/19 47,890 -500 -1.0% 2016-2017 05/01/19 20,700 -315 -1.5% 2008-2015

• Late Models (2016 – 2017) dropped an overall weighted average of $548 (-1.1%) in May. This is $48 more than the $500

(1.0%) depreciation seen in April.

• Older Models (2008 – 2015) dropped an overall weighted average of $333 (1.6%) in May, which is $18 more than April’s

depreciation of $315.

• Units in Class 4 (2016-2014 MY) dropped an average of $500 in May compared to $450 seen in April. Class 5 units depreciated $625 in May compared to April drop of $650.

• Class 6 dropped $550 in May, which is the same depreciation seen the month prior. Class 7 units depreciated $375 in May compared to April’s drop of $400.

• Auction prices over the past couple of months have continued a downward trend for Classes 4-7.

• Mileage and condition continue to play a large part in used equipment prices.

• Overall, we have seen a steady supply of used equipment, which is helping keep downward pressure on the used market.

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-$800

-$600

-$400

-$200

$0

+$200

+$400

Apr '18 Jul '18 Oct '18 Jan '19 Apr '19

CHANGES IN WHOLESALE VALUEMODEL YEARS 2014 TO 2016

CLASS 4 CAB/CHASSIS CLASS 5 CAB/CHASSIS CLASS 6 CAB/CHASSIS

CLASS 7 CAB/CHASSIS LIGHT-DUTY PICKUP TRUCKS

-$0.01

+$0.00

-$0.01

+$0.00+$0.02+$0.03

-$0.14-$0.11

-$0.08

$0+$0.01+$0.01

-$0.20

-$0.10

+$0.00

+$0.10

05/27/1905/20/1905/13/1905/06/1904/29/1904/22/19

Diesel Price Changes

Price Chg/Week Price Chg/Year

SPECIALTY MARKETS:

MEDIUM DUTY