LAWRENCEVILLE, Ga.—Used vehicle values fell again in January, after showing strength at the end of 2017, according to a new report.
Black Book’s Used Vehicle Retention Index closed out January at 113.1, falling 0.9% from the previous month (114.1). The Index has now changed -1.2% over the past 12 months (114.5).
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% 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, unbiased view of the strength of today’s used vehicle market values, Black Book stated.
Entering February, the market appears to be reaching typical depreciation levels following a few months of post-hurricane activity in the third and fourth quarters. Overall the market is experiencing a one-point decline, fairly uniform across roughly all segments, with near luxury cars the biggest decliners at -1.8% and luxury cars down at -1.6%, Black Book said.
“As we ended last year on a strong note with used vehicle values getting a lift due to hurricane replacement activity, we expected we a larger decline in January,” said Anil Goyal, executive vice president, operations. “We anticipate stability in the Index values over the next couple of months as the spring selling season gets underway, and consumers shop with an appetite driven by the recent tax changes.”