LAWRENCEVILLE, Georgia – Black Book, a division of Hearst that provides industry-leading used vehicle valuations and residual value forecast solutions, today released its Used Vehicle Retention Index for February 2022. For the first time since last summer, the Index decreased by 4.0 points (or 2.0%) to 193.0 points. The Index currently stands 68% above where it was at the same time in 2021 and 46% above February 2020 (just before the pandemic started).
“In February, we saw an accelerated decline of wholesale prices in all but two (Full-Size and Compact Vans) segments. That led to a decrease in the overall monthly seasonally adjusted retention index,” said Alex Yurchenko, Chief Data Science Officer at Black Book. “So far, it looks like the tax season boost to the retail demand is weaker than in a typical pre-pandemic year. We still expect a slower rate of decrease in prices in May with possible appreciation is some segments as the spring buying market arrives.”
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.
To obtain a copy of the latest Black Book Wholesale Value Index, please click here.
Originally posted on Agent Entrepreneur