3 reasons why Black Book Used Vehicle Retention Index dropped in November

Black Book pinpointed three reasons why its Used Vehicle Retention Index for November dipped noticeably compared to the previous month.

On Monday, analysts said their November index came in at 114.0, which represented a 1.4% decline from the October reading of 115.6.

Black Book executive vice president of operations Anil Goyal explained what triggered the wholesale price movement.

“The index has been relatively stable over the last two years,” Goyal said in a news release. “However, the combination of easing demand, high levels of inventory and increased incentives on new vehicles has led to additional softness beyond seasonal decline in the fourth quarter for the used-vehicle market.”

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%.

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.

The index continued to remain relatively stable, rising slightly until May of 2014 when it hit a peak of 128.1. During 2018, it rose from 114.1 to 116.3.

To obtain a copy of the latest Black Book Wholesale Value Index, go to this website.