LAWRENCEVILLE, Georgia – Black Book, a division of Hearst that provides industry-leading used vehicle valuation and residual value forecast solutions, released its Used Vehicle Retention Index for October 2020 (129.9), a -0.9 point change from September (130.8). Click here to obtain a copy of the latest index data.
We project the continuation of weakening of most of the segments, including Full-size Pickups, in the next several months as the economy remains weak and there is an expected glut of used supply.
“The Market Level Index decreased slightly in October,” said Alex Yurchenko, Senior Vice President, Data Science. “Without the strength in the Full-size Pickup segment, the market level decline would’ve been significantly sharper. We project the continuation of weakening of most of the segments, including Full-size Pickups, in the next several months as the economy remains weak and there is an expected glut of used supply.”
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. The Index offers an accurate, representative, and unbiased view of the strength of today’s used vehicle market values.
The Index dates 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 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.