Retention Index Slips for Second Straight Month
Black Book’s Used Vehicle Retention Index declined nearly across the board for the second consecutive month in January, offset by modest gains in the compact and mid-size segments.
Average retained values for compact cars such as the 2017 Nissan Sentra were up 0.11% in January, helping to offset a two-month, nearly across-the-board decline.
Photo courtesy Nissan USA
LAWRENCEVILLE, Ga. — Black Book (div. Hearst) reported a second straight monthly decline in its Used Vehicle Retention Index. The index fell to 115.4 in January, down 0.7% from December’s listing of 116.3.
The decline affected nearly every segment, with only compact (+0.11%) and mid-size cars (+0.03%) showing modest gains. Retained values for minivans, small pickups, mid- and full-size luxury SUVs and CUVs, sporty cars, subcompacts, near-luxury cars, and compact CUVs all fell by at least one full percentage point.
“After a strong performance in 2018, the index has now declined for two straight months. We believe this could be a precursor to a 2019 market that may show slightly larger depreciation overall compared with that in 2018,” said Executive Vice President of Operations Anil Goyal. “It is interesting to note that used sedans are still in demand, highlighting the affordability concerns of vehicle ownership.”
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 read the latest report in its entirety, click here.
Originally posted on Auto Dealer Today
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