LAWRENCEVILLE, Ga.—The used car market is already showing signs of strong used vehicle values this year.
Black Book reports that its Used Vehicle Retention Index for January (128.9) shows a slight increase in values, a +0.1 point change from December (128.8).
Full-size pickups contributed to the gains.
“With the expected improvements in used retail demand and shortages of new inventory, the overall used wholesale market was strong in January,” said Alex Yurchenko, SVP, data science and analytics. “The spring market came earlier than before this year with wholesale prices actually increasing during the last week of January. Full-size pickup trucks remained strong with the index for that segment increasing by 3.2 points. Early tax season preparations seemed to drive sub-compact and compact car segment’s indices up by 0.8 and 2.9 points, respectively.”
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.
To obtain a copy of the latest Black Book Wholesale Value Index, please click here.