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May wholesale prices stabilized after a record drop in April.
Image by PIRO4D via Pixabay
LAWRENCEVILLE, Georgia – 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 May 2020 (106.0), a -0.7 point change from April (106.7).
Due to changing economic conditions and the expected glut of used inventory, we project a drop in values over the summer months.
“After a record drop in wholesale prices in April, we saw the markets stabilize in the second part of May” said Alex Yurchenko, Senior Vice President, Data Science. “Both the Truck/SUV and Car segments depreciated in May, but at much lower rate. Due to changing economic conditions and the expected glut of used inventory, we project a drop in values over the summer months.”
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.
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