Black Book’s Used Vehicle Retention Index Decreases Again in August
The Retention Index continues to decline in August, finishing the month at 184.0 points as consumer demand for used vehicles weakened.
The Retention Index continues to decline in August, finishing the month at 184.0 points as consumer demand for used vehicles weakened.
LAWRENCEVILLE, Georgia – Black Book released its Used Vehicle Retention Index for August 2022. The Index decreased -2.9% (5.4 points) to 184.0 from July. This is the lowest the Index has been since October 2021. The Index currently stands 11% above where it was at the same time in 2021 and 61% above March 2020, pre-pandemic.
“Wholesale prices for the 2-8-year-old vehicle segments that comprise of Black Book’s Retention Index accelerated their decline in August,” said Alex Yurchenko, Chief Data Science Officer at Black Book. During August, we saw all but one (Sub-Compact Car) segment level indices decreasing in value, with luxury segments dropping the most. Black Book expects prices to continue to decline in the last four months of this 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. The Index offers an accurate, representative, and unbiased view of the strength of today’s used vehicle market values.
READ MORE: Black Book: Market Insights Report
Originally posted on Auto Dealer Today
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