Black Book, a division of Hearst Business Media that provides industry-leading used vehicle valuation and residual value forecast solutions, unveiled its Used Vehicle Retention Index for May, showing the Index falling 0.7% to 112.3 down from 113.1 in April. On a twelve-month basis, the index has dropped 5.6% from last May. Click here to obtain a copy of the latest index data.
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. The Index offers an accurate, unbiased view of the strength of today’s used wholesale market values.
The Index showed a decline as car and truck segments saw increased depreciation in May following a strong spring selling season during April. The Index saw a slight bump from 113.0 in March to 113.1 in April, the first time the Index saw an increase dating back to January, 2015.
Several car segments saw noticeable declines in the Index from the previous month. Sub-Compact Cars fell 1.6%; Full-Size Cars dropped 0.7%; Mid-Size Cars fell 0.6%; and Sporty Cars fell 1.0%. Conversely, Premium Sporty Cars rose 0.4%.
On the trucks side, Small Pickups increased 0.5% from the previous month; Full-Size Luxury Utilities increased 0.1%; and Full-Size Pickups held steady.
“There is not a lot of surprise in the May numbers, particularly after seeing arguably the strongest spring-season lift on record over the last three years in April,” said Anil Goyal, Senior Vice President of Automotive Valuation and Analytics for Black Book. “It is expected that we will see more declines in the Index in the months ahead as we move deeper into the year, particularly driven by softness among car segments.”
The Index dates back to January 2005, where 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 by lost 6.4%. During 2011, the index rose strongly from 113.3 to 123.0 by the end of the year as economy picked up steam and used vehicle values rose higher. It continued to remain relatively stable, rising slightly till May of 2014 when it hit a peak of 128.1.
To obtain a copy of the latest Black Book Wholesale Value Index and chart, please click here.
About Black Book
Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland as well as the Canadian Black Book in Toronto. For more information, please visit BlackBook.com or call 800.554.1026.