LAWRENCEVILLE, Ga.— The national shortage of new and used vehicles led to another record value-retention month, according to Black Book.
Black Book’s Used Vehicle Retention Index for May 2021 reached 159.6, a 7.1-point (or 4.7%) increase from April (152.4), the company said.
The Index currently stands 50.6% above where it was the same time last year, during lowest point in automotive values due to COVID-19.
“Wholesale prices continued their ascent each week in April, although the rate of increase declined through the month,” said Alex Yurchenko, SVP, data science and analytics. “Demand for used and new vehicles remained strong even with dwindling new inventory. Available used inventory stabilized in April and started to build up at the end of the month, although we are still about 10% below where we started the year. This strong demand and still low inventory together with low (and declining) incentive levels on new vehicles helped the retention index to increase for the fifth month in the row, to a new record. This month, all segments besides full-size vans showed increases, with minivans having the largest gains again (almost 13%).”
How Index is Calculated
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, please click here.
Black Book’s Used Vehicle Retention Index for May 2021 reached 159.6, a 7.1-point (or 4.7%) increase from April (152.4), the company said.
The Index currently stands 50.6% above where it was the same time last year, during lowest point in automotive values due to COVID-19.
“Wholesale prices continued their ascent each week in April, although the rate of increase declined through the month,” said Alex Yurchenko, SVP, data science and analytics. “Demand for used and new vehicles remained strong even with dwindling new inventory. Available used inventory stabilized in April and started to build up at the end of the month, although we are still about 10% below where we started the year. This strong demand and still low inventory together with low (and declining) incentive levels on new vehicles helped the retention index to increase for the fifth month in the row, to a new record. This month, all segments besides full-size vans showed increases, with minivans having the largest gains again (almost 13%).”
How Index is Calculated
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, please click here.
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