LAWRENCEVILLE, Ga.—After a slight increase in used vehicle values in April, prices slipped again in May, according to Black Book.
Black Book’s Used Vehicle Retention Index for May fell 0.7% to 112.3, down from 113.1 in April. On a 12-month basis, the index has dropped 5.6% from May of 2016.
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% of original typically-equipped MSRP.
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, Black Book said.
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.