LAWRENCEVILLE, Ga.—Used vehicle values started off 2024 by heading downward, Black Book is reporting.
In January, the company’s Used Vehicle Retention Index for January decreased 0.6% (1.0 point) to 150.0 from December 2023 (151.0), which is 10.6% below where it was at the same time in 2023. The Index sits 31% above the March 2020 reading – the last pre-pandemic month.
“Wholesale prices started the year with a normal depreciation rate but became almost flat by the end of January,” Alex Yurchenko, chief data science officer at Black Book, said in a statement. “We are starting to see the beginning of the spring market, especially in older and more affordable segments (like compact cars and crossovers) – these segments saw some appreciation at the end of the month. We are starting to see a new seasonal pattern emerging in the wholesale marketplace – longer spring market that starts in February and lasts through May followed by heavier depreciation in the second half of the year.”
How Values are 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.
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