LAWRENCEVILLE, Ga.—Used car prices began climbing again in August after stabilizing in July.
Black Book is reporting that its Used Vehicle Retention Index for August increased to 165.7 points, a 3.9 point (or 2.4%) increase from July (161.8).
The Index currently stands 28.5% above where it was the same time last year.
“After a brief break in July, wholesale prices started to increase at the end of August as the industry came to the realization that the new inventory shortage will worsen in the fall,” said Alex Yurchenko, chief data science officer at Black Book. “Dealers accelerated the acquisition of used inventory in anticipation of emptier new vehicle lots. In addition to the chip shortage, Hurricane Ida flooded large portions of the Southeast and Northeast, potentially aggravating inventory problems. We anticipate prices to remain strong at least through October."
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.
To obtain a copy of the latest Black Book Wholesale Value Index, click here.