Strength of Spring Has the Index Declining in Just One of Last Four Months
LAWRENCEVILLE, GA (May 1, 2018) – Black Book, a division of Hearst that provides industry-leading used vehicle valuation and residual value forecast solutions, released its Used Vehicle Retention Index for April showing that it remained unchanged from the previous month at 112.0. The Index has now changed -1.0% over the last twelve months (113.1). Click here to obtain a copy of the latest index data.
The Black Book Used Vehicle Retention Index is calculated using Black Book’s published Wholesale Average value on two- to six-year-old used vehicles, as percent of original typically-equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage, and condition. The Index offers an accurate, representative, and unbiased view of the strength of today’s used vehicle market values.
The monthly Index has only declined once over the last four months, dropping from 113.3 to 112.0 at the end of February. Much of this recent strength has come from a stronger-than-average spring selling season, with a handful of car segments seeing a rise during this stretch. Since March, Compact Cars have increased 2.5% and are up an impressive 3.4% over the last twelve months. Mid-size Cars are up 1.3% since March. On the other hand, Full-Size Pickups, Full-Size Crossover/SUVs and Sub-Compact Cars lost ground, declining by -0.7%, -1.6%, and -1.2%, respectively since March.
“The strength of several car segments over the last few months has been eye-opening, but it has certainly been helped by prices found with good value during this stretch along with rising gas prices,” said Anil Goyal, Executive Vice President, Operations. “We expect that car values will soon return to a more seasonal pace of depreciation, fueled by still-high supplies in the broader market as we get into the summer months.”
The Index dates back to January 2005, where Black Book published a benchmark index value of 100.0 for the market. During 2008, the index dropped by 14.1% while during 2016, the index fell by just 6.4%. During 2011, the index rose strongly from 113.3 to 123.0 by the end of the year as the economy picked up steam and used vehicle values rose higher. It continued to remain relatively stable, rising slightly until May of 2014 when it hit a peak of 128.1.
To obtain a copy of the latest Black Book Wholesale Value Index, please click here.
Author: Black Book
Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland. For more information, please visit BlackBookAuto.com or call 800.554.1026.