LAWRENCEVILLE, Ga.—Used vehicle values declined in December, but at a slower pace than in November, Black Book is reporting.
The company’s Used Vehicle Retention Index for November decreased 1.7% (2.5 points) to 151.0 from November 2023 (153.5), which is 10.9% below where it was at the same time in 2022. The Index sits 32% above the March 2020 reading – the last pre-Pandemic month, the company said.
“Wholesale prices continued to decline in December at a higher than usual (pre-2020) rate, but the depreciation was slower than in November,” said Alex Yurchenko, chief data science officer at Black Book. “We saw a drop in the conversion rates at the auctions, which is typical this time of the year. We anticipate more auction activity in January as dealers start to prepare for the Spring market. As OEMs push more incentives to move new inventory, used wholesale prices are expected to decline in January although not as rapidly as in the last quarter of 2023.”
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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