LAWRENCEVILLE, Ga. -

Black Book picked out a pair of trends from its newest Used Vehicle Retention Index that might impact how you shape your dealership inventory during the opening stages of 2020.

Analysts on Monday released the December index reading, which came in at 113.3, representing a 0.7-point dip from November when it stood at 114.0.

Black Book executive vice president of operations Anil Goyal looked closer at the data and arrived at these assertions.

“After a stable market performance earlier in the year, Q4 of 2019 experienced a steep decline in used vehicle values,” Goyal said in a news release. “The year ended with a 2.6% year-over-year change in the index.

“Full-size vans and luxury sedans experienced the steepest drops as the Index dropped by about 2% in the month of December for these segments,” he continued. “On the other hand, the index for mainstream mid-size sedans improved a little, highlighting the demand for affordable vehicles.”

The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on 2- to 6-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 dates to January 2005 when Black Book published a benchmark index value of 100.0 for the market. During 2008, the index dropped by 14.1% while during 2016, the index fell by just 6.4%.

During 2011, the index rose strongly from 113.3 to 123.0 by the end of the year as the economy picked up steam and used vehicle values rose higher. It continued to remain relatively stable, rising slightly until May of 2014 when it hit a peak of 128.1.

To obtain a copy of the latest Black Book Wholesale Value Index, go to this website.