Monday, Aug. 03, 2020, 11:47 AM
Records continue to tumble in the wholesale market.
Black Book reported on Monday that the month-over-month increase of its Used Vehicle Retention Index established another record as the July reading came in at 126.0, representing a 10.9 point lift from the June level of 115.1.
“July’s growth in the Retention Index broke the month-over-month increase record set just a month earlier,” said Alex Yurchenko, senior vice president of data science at Black Book. “Wholesale prices showed tremendous strength for the second month in a row due to shortages of used and new inventory, together with a strong demand fueled by the first round of federal stimulus payments.”
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 a 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.