LAWRENCEVILLE, Ga.—Used vehicle values in December showed their sharpest declines since last May, Black Book reports, adding that overall 2018 was a strong year for used values.
Citing the company’s Used Vehicle Retention Index, Black Book reported that the Index dipped to 116.3 last month, from 116.5 November.
The Used Vehicle Retention Index finished the year up by +1.9% compared with 2017. It was the largest year-over-year increase for the Index dating back to 2012, when the index climbed 3.5% compared with 2011, Black Book said.
“The segments showing the greatest gains and declines in the Index this month were a mix of car and truck segments,” said Anil Goyal, executive vice president, operations. “This is certainly the time of year when we see declines ahead of the spring selling season. However, the decline in December was higher than typical seasonality, thus a slight decline in the Index. Given the current economic conditions, demand for used and new vehicles remains strong but there is a cloud of uncertainty as we start 2019.”
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.
To obtain a copy of the latest Black Book Wholesale Value Index, click here.