As mentioned previously, Black Book reported its May Used Vehicle Retention Index for May registered in at 106.0.
“After a record drop in wholesale prices in April, we saw the markets stabilize in the second part of May,” Black Book Senior Vice President of Data Science Alex Yurchenko said in a news release.
“Both the truck/SUV and car segments depreciated in May, but at much lower rate. Due to changing economic conditions and the expected glut of used inventory, we project a drop in values over the summer months,” Yurchenko continued.
The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on 2- to 6-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 goes back to January 2005 when Black Book published a benchmark index value of 100.0 for the market. During 2008, the index dropped by 14.1% while during 2016, the index fell by just 6.4%.
During 2011, the index rose strongly from 113.3 to 123.0 by the end of the year as the economy picked up steam and used vehicle values rose higher. It continued to remain relatively stable, rising slightly until May of 2014, when it hit a peak of 128.1.
To obtain a copy of the latest Black Book Wholesale Value Index, go to this website.