Wednesday, Dec. 02, 2020, 02:12 PM
Black Book explained how the latest movement in its Used Vehicle Retention Index continues to reflect how the wholesale market is behaving in light of pandemic-related impacts.
Black Book reported on Wednesday that its November index reading came in at 130.6, representing a 0.7-point increase from the October mark of 129.9.
“The market level index increased slightly in November,” Black Book senior vice president of data science Alex Yurchenko said in a news release. “Most of the segments depreciated at a slower rate than we have seen in the past at this time of the year.
“The wholesale market is still adjusting to shortages of supply due to abnormally low repossession rates, low levels of rental units remarketing (as rental fleet companies were able to right-size their inventory prior to October), and a decrease of trade-in volume at the auctions (as dealers kept more of that inventory outside of wholesale market),” Yurchenko continued.
“We project the weakening of most of the segments this winter, including full-size pickups, without a substantial second federal stimulus as the economy remains weak and there is an expected increase of used supply,” he went on to say.
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. 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 rebounded 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.
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December 03, 2020 at 02:12AM
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Black Book's November index reading shows continued COVID-19 adjustments - Auto Remarketing
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