Summer’s End Puts Retention Index on Downward Track
‘Market strength is waning’ for used vehicles after a strong summer, a trend that is likely to continue through the end of the year, according to the latest report from Black Book.
Black Book analysts say retained values for used vehicles fell in September after peaking in August.
Photo by Craig Adderley via Pexels
LAWRENCEVILLE, Ga. — Valuation and value forecast solutions provider Black Book (div. Hearst) released its Used Vehicle Retention Index for September. The index fell to 115.9, a -0.6% change from August (116.6).
The index remains above the 115 registered in June and July. It increased 1.4% in August, a month in which subcompacts led the charge with a 2.1% gain. The index appears to be following a seasonal pattern since a long, slow decline that began in June 2014 (128.1) and reached its nadir in May 2017 (112.3).
Read: Hot August: Subcompacts Lead 1.4% Gain in Retained Values
“The used market held up pretty well during summer when traditionally, the values have declined,” said Executive Vice President of Operations Anil Goyal. “However, we are now starting to see that the market strength is waning. We expect the index to continue to drop in the remaining months of the year.”
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.
More Auto Finance
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →