LAWRENCEVILLE, Ga.—Used car values continued to close out the year on a strong note, according to the latest report from Black Book.
The company released its Used Vehicle Retention Index for November, with the Index increasing 0.3% month-over-month, from 114.6 in October to 115.0. It is the third straight monthly increase dating back to August when the Index stood at 112.6.
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, unbiased view of the strength of today’s used vehicle market values, Back Book stated.
The Index rose for the third-straight month giving used cars and trucks relative strength heading into the final month of the year. The Index has increased in five months during 2017, with a sixth month unchanged (June – July). It’s the first time since 2013 (increased six times) that the Index increased at least five times during the calendar year, Black Book said.
Nine segments saw increases in the Index during November: compact crossover/SUV, full-size car, full-size pickups, full-size vans, luxury cars, mid-size crossover/SUV, mid-size luxury crossover/SUV, prestige luxury cars, and small pickups.
“The continued strengthening of the Index indicates 2017 has been a little stronger than expected for used cars and trucks, helped along the way by the hurricane replacement activity,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book. “Any continued strengthening over the next few months will mean we’re getting an early jump at the oncoming tax spending season, when consumers use their checks to replace their vehicles in the spring.”