Black Book's Index Continues Upward March in October
The firm attributed the strong vehicle retention in October to increased replacement activity stemming from Hurricanes Harvey and Irma. However, the increased replacement activity seen in October is expected to be the last boost to come from the hurricanes.
by Staff
November 3, 2017
Courtesy of Black Book.
1 min to read
Courtesy of Black Book.
The Black Book used vehicle retention index grew 0.6% month-over-month to 114.6 in October, according to the firm. This marks the second straight monthly rise for the index.
The firm attributed the consecutive monthly rise to replacement activity stemming from Hurricanes Harvey and Irma. However, the increased replacement activity seen in October is expected to be the last boost to come from the hurricanes.
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“So far this year, we have seen a very strong performance for used vehicle value retention, driven largely by the surprising value shoppers found in the affordable smaller cars after spring, and the huge demand resulting from hurricane replacements in the fall,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book.
During October, compact crossovers/SUVs, full-size cars, full-size crossovers/SUVs, and full-size pickups saw some of the strongest value retention due to increased demand in the month.
However, the forecast for the remaining two months of the year doesn’t look as bright. Goyal noted that he expects the market to see a slight decline by year’s end. Even still, he affirmed that used vehicle values should end higher than expected earlier this year.
Following Hertz, the company is the second global car rental conglomerate to sustain sizable losses due to lower customer demand and usage of electric rental cars.