LAWRENCEVILLE, Ga.—Used vehicle values saw their largest one-month gain since March 2012, according to a new report that said Hurricanes Harvey and Irma played a role in the jump.
Black Book’s Used Vehicle Retention Index for September increased from 112.6 to 113.9.
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. The Index offers an accurate, unbiased view of the strength of today’s used vehicle market values, Black Book stated.
Hurricane Harvey caused major flooding throughout parts of Texas, resulting in an estimated up to 500,000 cars and trucks needing to be replaced, Black Book stated. The replacement process began in September, with compact cars (+2.8%), compact crossover SUVs (+2.4%), full-size cars (+2.5%), and mid-size cars (+2.3%) each seeing significant month-over-month increases within the Index.
"We certainly anticipated a near-term increase in the Index in last month's report, and with the storm replacement activity kicking in we believe this activity will continue in the next month but not much longer," said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book. "We saw a nice bump in several car segments, and we also anticipate several truck segments to see increases as well, especially with the demand for service and construction vehicles. It was interesting that mainstream car segments and compact SUVs experienced the largest increase in immediate replacement demand."
To obtain a copy of the latest Black Book Wholesale Value Index, click here.