LAWRENCEVILLE, Ga.— Used vehicle values shifted gears in August, Black Book reported.
After four months of declining values, the company’s seasonally adjusted Used Vehicle Retention Index increased 0.7% (1.0 points) in August to 146.0 from July (145.0), which is 10% below where it was at the same time in 2023, Black Book said.
The Index sits 27.5% above the March 2020 reading – the last pre-Pandemic month.
“After four consecutive months of the Index declining, the market stabilized in August,” stated Laura Wehunt, VP of Analytics. “Three years after the market experienced a decrease in new vehicle supply due to production shutdowns, the industry is now witnessing the effects of lower used supply. This low supply is stabilizing the market despite unfavorable conditions such as rising incentive levels, high-interest rates and increasing delinquency rates.”
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.