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The May Retention Index showed another increase and broke yet another record, reaching 159.6 points, a 7.1 point (or 4.7%) increase from April (152.4).
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All nine car segments reported gains last week, however, 0.8% is the lowest weekly gain the overall car segment has seen in 15-weeks.
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It is now clear that like 2020, 2021 will also not have typical seasonality patterns as the market is going through a rapid increase in wholesale values.
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New inventory is not expected to see improvement until the third quarter of this year, so values are expected to remain at elevated levels throughout the summer.
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Car segment gains ticked up slightly this past week (+1.25%) compared to the week prior (+1.17%).
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The Black Book April Retention Index broke yet another record, reaching 152.4 points.
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Retail inventory levels, new and used, continue to be a challenge and the limited availability of quality vehicles in the wholesale market is also proving to be a challenge for buyers.
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Inventory levels continue to be tight, both in the new and used retail markets, as well as the wholesale market, further fueling the price required to source used inventory.
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This month, tens of millions of federal stimulus checks hit bank accounts across the country. If last year is any guide, many of those will wind up being used to buy powersports vehicles of one type or another.
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History Adjusted Residual Values are an industry first.
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