Along with rolling out a new tool to help dealers find those “cherries” for their inventories, Black Book also released its Used Vehicle Retention Index for April showing that it remained unchanged from the previous month.
Editors indicated the index stayed at 112.0, while the reading has softened by 1.0 percent over the past 12 months.
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.
Black Book noted that its monthly Index has only declined once during the last four months, dropping from 113.3 to 112.0 at the end of February. Much of this recent strength has come from a stronger-than-average spring selling season, with a handful of car segments seeing a rise during this stretch.
Since March, editors tabulated that compact-car prices have increased 2.5 percent and are up an impressive 3.4 percent during the past 12 months. Midsize cars prices are up 1.3 percent since March.
On the other hand, Black Book shared that prices for full-size pickups, full-size crossover/SUVs and sub-compact cars lost ground, declining by 0.7 percent, 1.6 percent, and 1.2 percent, respectively since March.
“The strength of several car segments over the last few months has been eye-opening, but it has certainly been helped by prices found with good value during this stretch along with rising gas prices,” said Anil Goyal, executive vice president of operations at Black Book.
“We expect that car values will soon return to a more seasonal pace of depreciation, fueled by still-high supplies in the broader market as we get into the summer months,” Goyal continued.
The index dates back to January 2005, where Black Book published a benchmark index value of 100.0 for the market. During 2008, the index dropped by 14.1 percent while during 2016, the index fell by just 6.4 percent.
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.
Details about Black Book Cherry
In other company news, Black Book, released a new inventory recommendation solution named Black Book Cherry. Available on desktop or mobile, Black Book Cherry can help personalize dealers’ inventory discovery by automatically identifying the most desirable vehicles at auction, appropriately known as “cherries.”
Timely and efficient local auction research can help dealers gain a significant competitive edge by allowing them to spend less time trawling auction run lists and more time evaluating profitable vehicles. Available to all Black Book Digital mobile application subscribers, Black Book Cherry uses individual subscriber’s previous inventory preferences and behavior to filter run lists according to the dealer’s needs.
It is auction-agnostic and works nationally, according to a Black Book news release.
Additional functionality can allow users to “like” a vehicle, label it as a cherry, “dislike” a vehicle, or “share” a vehicle with a colleague or customer. As a result of continued use, the app becomes more intuitive and smarter with time as the users’ preferences develop.
Users are notified of new vehicles entering the marketplace , and at a glance, see the most exciting auctions and must-have inventory.
“I spend too much time searching for the right inventory and Cherry helps me find specific vehicles much faster,” said Cedrick Ferguson of F1 Motorsports. “It’s a great asset and useful for both dealerships and wholesalers.”
Black Book senior product manager Kyle Luck elaborated about Ferguson’s point.
“Most dealers spend hours each week reviewing auction run lists, trying to find the right car at the right price,” Luck said. “Without configuration, Black Book Cherry immediately adds value and intelligently connects automotive professionals with their ideal inventory. It’s automatic and it is fun too.”
With each subscription to Black Book Digital, users gain access to valuations, History Adjusted Valuations, and the new inventory discovery solution, Black Book Cherry.
For more information, call (800) 554-1026 or visit www.blackbook.com/cherry.