LAWRENCEVILLE, Ga.—Used vehicle values returned to pre-pandemic levels, according to Black Book’s Used Vehicle Retention Index for June.
The Index (115.1) showed a +9.1 point change from May (106.0).
“Fueled by federal stimulus and a lack of new inventory, retail demand for used vehicles in June was strong,” said Alex Yurchenko, senior vice president, data science. “Additionally, limited used supply due to various factors, for example, delayed lease returns, pause in many delinquency repositions and limited throughput of auctions, helped used prices to bounce back to pre-COVID-19 levels. Black Book’s seasonally adjusted Retention Index jumped a record 8.6% in June, matching the value of the Index in 2019. Due to weak economic conditions, we do not expect this strength to continue, and we project a drop in values later this summer.”
As CUToday.info reported, Black Book is predicting a rough year for used vehicle value retention, forecasting as much as a 30% annual decline.
How Index Is Calculated
Black Book said its Used Vehicle Retention Index is calculated using the company’s published Wholesale Average value on two- to six-year-old used vehicles, as a percentage of original typically-equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage, and condition.