LAWRENCEVILLE, Ga.— Used values continue to show record-level value retention, Black Book reports.
Black Book’s Used Vehicle Retention Index for April 2021 stood at 152.4, which is an 11.2 point—or 8.0%—gain from February (141.2). The Index currently stands 43% above where it was the same time last year, during initial economic shut down due to COVID-19.
“Wholesale prices continued their ascent each week in April, although the rate of increase declined slightly at the end of the month,” said Alex Yurchenko, SVP, data science and analytics at Black Book. “Demand for used and new vehicles remained strong but available inventory continued to decline. This elevated demand and low inventory coupled with low incentives levels on new vehicles helped the retention index to increase for the fourth month in the row. This month, all segments showed increases, with compact car and minivans having the largest gains.”
As CUToday.info has reported, a microchip shortage has slowed new car production this year, which has led to more used car sales, and shortages of both new and used cars on dealer lots.
Basis for Calculation
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, click here.