Index Could Be Stable The Next Few Months Due To Spring Selling Season
LAWRENCEVILLE, GA (February 5, 2018) – Black Book, a division of Hearst Business Media that provides industry-leading used vehicle valuation and residual value forecast solutions, released its Used Vehicle Retention Index for January, with the Index registering 113.1 and falling -0.9% from the previous month (114.1). The Index has now changed -1.2% over the past twelve months (114.5). 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, unbiased view of the strength of today’s used vehicle market values.
Entering February, the market appears to be reaching typical depreciation levels following a few months of post-hurricane activity in the third and fourth quarters. Overall the market is experiencing a one point decline, fairly uniform across roughly all segments, with Near Luxury Cars the biggest decliners at -1.8% and Luxury Cars down at -1.6%.
“As we ended last year on a strong note with used vehicle values getting a lift due to hurricane replacement activity, we expected we a larger decline in January.,” said Anil Goyal, Executive Vice President, Operations. “We anticipate stability in the Index values over the next couple of months as the spring selling season gets underway, and consumers shop with an appetite driven by the recent tax changes approved.”
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.
