While Manheim noticed record-setting metrics again for its latest monthly report, Black Book on Tuesday released its Used Vehicle Retention Index for June and observed a more modest sequential uptick and even a decline compared to a year ago.
Black Book found that its index edged higher to 113.0 in June, up from 112.3 in May. On a 12-month basis, the index dropped 4.5 percent compared last June.
Editors recapped that 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.
Perhaps not record-setting, Black Book acknowledged the Index rose for the second time in the past three months. It increased slightly in April due to a stronger-than-expected spring selling season for used vehicles, and it saw gains in June largely because falling gas prices helped with the sale of used trucks, crossovers and SUVs.
Despite these gains, editors pointed out that falling gas prices also meant a continuation of accelerated depreciation for subcompact and compact cars.
“In addition to falling gas prices, which are playing a role in driving a little more interest for certain trucks today, there are generally some very good deals out there for used vehicles currently,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book.
“These are the primary reasons why we are seeing some bounce off the lows in used car retention trends,” 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.