Black Book described how the wholesale market is showing its “resilience” based on recent movement of its Used Vehicle Retention Index.
Late Thursday, Black Book released its latest index reading, highlighting that it increased 0.4 percent during June to come in at 113.3. That’s up from the May reading of 112.9.
Editors tabulated that the index has risen 0.3 percent over the last 12 months (113.0).
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 recapped that June saw several car and truck segments make a splash during the month with small cars and SUVs providing the biggest impact to the overall index. Editors indicated that segments making the largest gains included:
— Sub-Compact: up 1.4 percent
— Sporty: up 1.2 percent
— Premium sporty: up 0.7 percent
— Compact: up 0.7 percent
— Compact crossovers: up 0.5 percent
“The used car and truck market continues to show its resilience with several segments continuing to serve as the catalyst in driving overall increases to the Black Book Vehicle Retention Index, long after the spring market has ended,” said Anil Goyal, executive vice president of operations at Black Book.
“We believe that the used-vehicle market strength is reaching its plateau and will return to its pattern of accelerating depreciation as we get deeper into the calendar year,” Goyal continued.
The index dates back 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 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.
The index 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.