LAWRENCEVILLE, Ga.—After a near record drop in used vehicle values in September, used values rose in October, according to Black Book, which added the UAW strike is likely a key reason.
Black Book’s Used Vehicle Retention Index for October 2023 increased 1.1% (1.7 points) to 161.0 from September 2023 (159.3), which is 7.6% below where it was at the same time in 2022. The Index sits 41% above the March 2020 reading – the last pre-pandemic month, the company said.
“The most visible effect of the UAW strike on the used market was the slowdown of depreciation in October,” Alex Yurchenko, Chief Data Science Officer at Black Book, said in a statement. “Overall wholesale prices declined in October at a slower than typical rate, thus the seasonally adjusted index increased. We expect new inventory to continue to build up and incentives to increase through the end of the year. In this climate, we forecast that wholesale prices will decline in Q4 by at least 6%.”
How Index is Calculated
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, please click here.
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