LAWRENCEVILLE, Ga.—Used vehicle demand remained strong last month, with the latestBlack Book Used Vehicle Retention Index showing a 0.5% increase during July, registering 113.9 and up from 113.3 in June.
The Index has changed 0.7% over the last 12 months (113.0).
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, Black Book said.
Leading the July Index increase was the sub-compact car segment with a 1% increase over the prior month. Sporty car, premium sporty car, compact car, mid-size car and full-size car all had gains of more than 0.5%, while full-size pickup and full-size luxury SUV segments showed declines.
A ‘Clear Reflection’
“The Black Book Index strength over the last year is a clear reflection that there is strong demand for many segments of used vehicles – particularly for cars,” said Anil Goyal, executive vice president, operations. “While we are forecasting typical seasonal depreciation pattern through the remainder of the year, dealers and remarketers should continue to see increasing sales volume on used vehicles, driven by continued employment growth and high consumer confidence.”