LAWRENCEVILLE, Ga.—After rising for three straight months, used vehicle values dipped in December, according to a new report.
Black Book’s Used Vehicle Retention Index for December fell 0.7%, from 115.0 to 114.1.
Used vehicle values had been buoyed in recent months by replacement activity resulting from Hurricanes Harvey and Irma.
The Index fell in December largely due to higher depreciation recorded for both car and truck segments, Black Book reported. The 114.1 mark was the lowest tally for December dating back to 2010 when the Index was at 113.3. The used vehicle market began a run of strong retention that year from higher consumer demand and low supply levels, and finished December 2011 with a mark of 123.0, the company said.
December saw higher depreciation on a mix of both car and truck segments, led by full-size luxury CUV/SUV (-2.0%); mid-size luxury CUV/SUV (-1.9%); full-size cars (-1.7%); compact crossovers (-1.7%); and compact cars (-1.4%).
“While December finished on a slightly down note for the Index, the overall year in 2017 was filled with stronger-than-expected retention rates, mainly due to a continuously health economy and vehicle replacement activity following the major hurricanes,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book. “We expect to see depreciation rates return to normal levels in 2018, even though the recent tax changes may incentivize some additional spending, particularly during the spring tax season.”