LAWRENCEVILLE, Ga.—Used car values in November declined at a pace slower than what is typically experienced during that of year, Black Book is reporting.
Black Book’s Used Vehicle Retention Index for November increased slightly (0.7 points) from October.
“The Market Level Index increased slightly in November,” said Alex Yurchenko, senior vice president, data science. “Most of the segments depreciated at a slower rate than we have seen in the past at this time of the year. The Wholesale market is still adjusting to shortages of supply due to abnormally low repossession rates, low levels of rental units remarketing (as rental fleet companies were able to right-size their inventory prior to October), and a decrease of trade-in volume at the auctions (as dealers kept more of that inventory outside of wholesale market). We project the weakening of most of the segments this winter, including full-size pickups, without a substantial second federal stimulus as the economy remains weak and there is an expected increase of used supply.”
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, click here.