LAWRENCEVILLE, Ga.—Used car values have now dropped for two consecutive months.
Black Book’s Used Vehicle Retention Index decreased in April to 185.4, a 2.4-point (or 1.3%) drop. As CUToday.info reported, the Index had also declined in March.
The Index currently stands 22% above where it was at the same time in 2021 and 62% above pre-pandemic level in March 2020.
“In April we saw an overall market decline of wholesale prices for two- to eight-year-old vehicle segments that comprise Black Book’s Retention Index, but by the end of the month, the trend reversed, driven mostly by cars and smaller SUV segments,” said Alex Yurchenko, chief data science officer at Black Book. “We also finally started to see the effects of high gasoline prices on consumer demand—most non-luxury, smaller vehicles of all ages increased in price during the last week of April.
‘Surprising Jump’
“A surprising jump in consumer confidence in April—although still one of the lowest readings in a decade—and a small decline in gas prices gave some hope for improved consumer demand for used vehicles,” continued Yurchenko. “With the resolution of supply chain issues being pushed further into 2023, we are expecting only a moderate decline in prices during the summer months.”
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.
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