LAWRENCEVILLE, Ga.—Used vehicle values continue to weaken, according to Black Book, whose Used Vehicle Retention Index dropped for the third month in a row in February.
The Index for February was 114.5, a -0.8% change from January (115.4). The Index has also fallen -1.0% over the last twelve months.
All segments except for full-size van (+0.56%) showed a decline this past month, with most luxury vehicle segments showing the largest declines.
In fact, segments such as midsize luxury CUV/SUV (-2.13%) and sub-compact car (-2.29%) saw some of the largest single-month declines in over a year in the Index.
“The start of the spring selling season appears to be late this year, perhaps from slower and smaller tax refunds this year, as well as the harsher-than-normal winter weather patterns across much of the country,” said Anil Goyal, executive vice president, operations. “March should be a very telling month not only for spring, as it may likely set the tone for the remainder of the year.”
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, representative, and unbiased view of the strength of today’s used vehicle market values, Black Book said.