Black Book Used Vehicle Retention Index Decreases in December
There were 4 months of typical seasonal decline in prices, resulting in a relatively flat seasonally adjusted index.
IMAGE: Black Book
LAWRENCEVILLE, Ga. – 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 December 2020 (128.8), a 1.8 point decline from November (130.6). Click here to obtain a copy of the latest index data.
“The seasonally adjusted Retention Index has remained relatively stable since August,” said Alex Yurchenko, SVP, Data Science. “Nevertheless, due two record-setting summer months, the year ended with a 15.5-point (or 13.7%) year-over-year change in the Index. In fact, only the Minivan Segment did not have a year-over-year increase in the Index.”
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. During 2020, we saw the largest drops and increases in the Index due to supply and demand pressures during the COVID-19 pandemic. To obtain a copy of the latest Black Book Wholesale Value Index, please click here.
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Originally posted on F&I and Showroom