LAWRENCEVILLE, Ga. — The last remaining replacement activity stemming from hurricanes Harvey and Irma drove continued vehicle value stability and shopping demand in October, with Black Book’s Used Vehicle Retention Index increasing 0.6% from September to 114.6. This marked the second straight monthly increase dating back to August, when the index stood at 112.6
Benefitting from the increased demand were compact crossover SUVs (up 1.3%), full-size cars (up 1.3%), full-size crossover SUVs (up .75), and full-size pickups (up 2%), which showed noticeable retention strength in October.
“So far this year, we have seen a very strong performance for used vehicle value retention, driven largely by the surprising value shoppers found in the affordable smaller cars after spring, and the huge demand resulting from hurricane replacements in the fall,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book. “Looking ahead in the next two months, we expect the market to decline slightly but still end this year with a better-than-expected strength in used vehicle values.”
The Index dates back to January 2005, when Black Book published a benchmark index value of 100.0 for the market. It is calculated using Black Book’s published wholesale average value on two- to six-year-old used vehicles, as a 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, unbiased view of the strength of today’s used vehicle market values.
Originally posted on F&I and Showroom