LAWRENCEVILLE, Ga. — Black Book (div. Hearst) released its updated Used Vehicle Retention Index. The index ticked up 113.9 in July, a 0.5% improvement from June (113.3) and a 0.7% increase from the same month a year ago (113.0).
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.
Leading the July index increase were subcompact cars, which enjoyed a 1% increase from June. Sporty cars, premium sporty cars, compact, mid-sizers, and full-sizers all had gains over 0.5%, while the full-size and pickups and full-size luxury SUV segments showed declines.
“The Black Book Index strength over the last year is a clear reflection that there is strong demand for many segments of used vehicles — particularly for cars,” said Executive Vice President of Operations Anil Goyal. “While we are forecasting typical seasonal depreciation pattern through the remainder of the year, dealers and remarketers should continue to see increasing sales volume on used vehicles, driven by continued employment growth and high consumer confidence.”