LAWRENCEVILLE, Ga.—As new car supply chain issues continue to improve, used car prices continue to fall.
Black Book’s Used Vehicle Retention Index declined again in December, falling 1.1% (2.0 points) to 169.5 from November, which is 13.4% below where it was at the same time in 2021 and 47.9% above March 2020, pre-pandemic, the company reported.
“Wholesale prices for the two- to six-year-old vehicle segments that comprise Black Book’s Used Vehicle Retention Index declined in December at a rate similar to what we saw in 2019, right before the pandemic started,” said Alex Yurchenko, chief data science officer at Black Book. “With consumer confidence low and overall uncertainty about the economy, dealers were cautious with their acquisitions. Conversion rates at auctions declined dramatically last month.
Hitting the Brakes
Moreover, with the need to move inventory faster and improve demand, dealers accelerated the reduction of retail listing prices.”
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.
To obtain a copy of the latest Black Book Wholesale Value Index, please click here.
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