LAWRENCEVILLE, Ga.—The used car market continues to return to more normal levels of depreciation, according to the latest data from Black Book, although valuations still remain far above where they were two years ago.
Black Book reported that its Used Vehicle Retention Index decreased for the fourth consecutive month in October.
The Black Book’s Index declined 1.2% to 174.3 from September, which is 3.3% below where it was at the same time in 2021 and 52% above March 2020.
“Wholesale prices for the two-six-year-old vehicle segments that comprise of Black Book’s Used Vehicle Retention Index continued to decline in October at rates above expected seasonal depreciation,” said Alex Yurchenko, chief data science officer at Black Book. “Typically, we observe the highest decreases of wholesale prices in Q4. This year will not be an exception, and we expect the declines in the next two months to match the historically high rates typically observed at the end of the year. We are also starting to see used retail prices decrease, although not as steeply as wholesale prices.”
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.
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