LAWRENCEVILLE, Ga.—The spring used car selling season is off to a slow start, according to a new report.
Used vehicle values, which typically spike in spring as consumers begin shopping more for cars, have yet to see a boost, noted Black Book, citing itsUsed Vehicle Retention Index for dropped in March (113.8), a -0.6% change from February (114.5).
However, Black Book noted, the Index is 1.7% higher than where it was a year ago (112.0).
The Index has dropping each month since November.
SUV’s and Luxury vehicles showed the largest declines in March, with minivans, compact to mid-size cars and small pickups having modest gains. Market share changes reflect a continued shift away from cars and toward more SUV’s and pickups, Black Book said.
‘Headwinds for the Industry’
“While the economy continues to expand, higher supply of used vehicles and affordability issues have continued to become headwinds for the industry,” said Anil Goyal, executive vice president, operations. “The spring market is expected to provide a quick jolt to the market during April, but we expect the Index will feel the effects from slower retail demand of new vehicles that could lead to higher incentives.”
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