Retained values for luxury cars such as the 2017 BMW 5 Series fell by nearly a full percentage point in Black Book’s May report, but retention in all categories improved by 0.7%. 
 - Photo courtesy BMW Group

Retained values for luxury cars such as the 2017 BMW 5 Series fell by nearly a full percentage point in Black Book’s May report, but retention in all categories improved by 0.7%.

Photo courtesy BMW Group

LAWRENCEVILLE, Ga. — Black Book (div. Hearst)’s Used Vehicle Retention Index climbed to 114.4 in May, a 0.7% change from April (113.6). The increase marked the first monthly rise dating back to October.

With a strong finish to the spring market visible in May, many car segments saw their index position strengthen, while a handful of luxury segments declined. Subcompact cars saw the strongest month at an increase of 0.85%, followed by sporty cars (0.72%), mid-size cars (0.65%), and full-size cars (0.61%).

The luxury car segment declined by 0.94% during May, followed by prestige luxury cars at -0.66%.

Trucks, SUVs, and crossover segments remained largely unchanged during May, but are expected to see retention remain firm as demand shifts away from cars following the spring tax season.

“We don’t expect the strong spring season to influence the trend in the coming months. The overall depreciation to fall further in 2019 compared with last year,” said Anil Goyal, executive vice president, Operations. “However, all bets are off if tariff threats become reality, significantly impacting the auto industry.”

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.

To read the full report, click here

Originally posted on Auto Dealer Today

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