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Index Continues To Lose Momentum But Expects Quick Jolt from April Spring Season
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 March (113.8), a -0.6% change from February (114.5). The Index is 1.7% higher than where it was a year ago (112.0). Click here to obtain a copy of the latest index data.
The Index has reflected a late start to the spring selling season, dropping each month since November. SUV’s and Luxury vehicles showed the largest declines in March, with Minivans, Compact to Mid-Size Cars and Small Pickups having modest gains. Market share changes reflect a continued shift away from cars and toward more SUV’s and Pickups.
“While the economy continues to expand, higher supply of used vehicles and affordability issues have continued to become headwinds for the industry,” said Anil Goyal, Executive Vice President, Operations. “The spring market is expected to provide a quick jolt to the market during April, but we expect the Index will feel the effects from slower retail demand of new vehicles that could lead to higher incentives.”
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 Index dates 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.
About 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. 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, and the company maintains offices in Georgia, Florida, and Maryland as well as the Canadian Black Book in Toronto. For more information, please visit BlackBook.com or call 800.554.1026.