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.
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