LAWRENCEVILLE, Georgia – Black Book, a division of Hearst that provides industry-leading used vehicle valuations and residual value forecast solutions, released its Used Vehicle Retention Index for June 2022. The Index increased to 191.5 points, a 2.8-point (or 1.5%) gain. The Index currently stands 15% above where it was at the same time in 2021 and 67% above March 2020, pre-pandemic.
“Wholesale prices continued to increase in June for the 2-8-year-old vehicle segments that comprise of Black Book’s Retention Index” said Alex Yurchenko, Chief Data Science Officer at Black Book. “Softening demand due to uncertain future macroeconomic prospects did not prevent wholesale prices from increasing at the beginning of the summer.
“Available new vehicle inventories are increasing, but new sales are not recovering to a pre-COVID level. Dealers and some rental companies are actively bidding for the vehicles, causing the demand on the wholesale market to remain strong even while retail market is seeing a slowdown.”
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, click here.
Originally posted on Agent Entrepreneur