LAWRENCEVILLE, Ga.—While some analysts recently stated the rise in used car values is over, Black Book reports that climbing prices are still the trend—but that trend is slowing.
Black Book’s seasonally adjusted Retention Index moved up by 0.6% (1.3 points)–the lowest rate of increase since July–reaching 197.0 points during the first month of 2022.
The Index currently stands 53% above where it was at the same time in 2021 and 72% above January 2020, right before the pandemic started.
Comparing the Segments
“During the first month of 2022, we continued to see declines in wholesale prices in most segments, but at a slower rate than historical data. That led to a small increase in the overall monthly seasonally adjusted retention index,” said Alex Yurchenko, chief data science officer at Black Book. “Some of the segments experienced a larger than typical January drop (like mid-size cars and full-size pickups), but we also saw continued strength in van (of all sizes) segments. We expect a stable wholesale market in February as the industry prepares for the tax-buying season.”
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.
Click here to obtain a copy of the latest Index data.
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