LAWRENCEVILLE, Ga.—The used vehicle market appears to be stabilizing—for now.
Black Book’s Used Vehicle Retention Index for May 2020 (106.0) showed a -0.7 point change from April (106.7).
“After a record drop in wholesale prices in April, we saw the markets stabilize in the second part of May,” said Alex Yurchenko, senior vice president, data science at Black Book. “Both the truck/SUV and car segments depreciated in May, but at much lower rate. Due to changing economic conditions and the expected glut of used inventory, we project a drop in values over the summer months.”
As CUToday.info reported, Black Book is predicting a record 30% drop is used car values by the end of 2020.
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.