Black Book's Used Vehicle Valuation Index Falls in May
“It is expected that we will see more declines in the Index in the months ahead as we move deeper into the year, particularly driven by softness among car segments,” said Anil Goyal, senior vice president of Automotive Valuation and Analytics for Black Book.
by Staff
June 5, 2017
Black Books' Used Vehicle Retention Index declined 0.7 percent from April to May. Anil Goyal, senior vice president of Automotive Valuation and Analytics for Black Book, predicts further declines in the coming months. Photo courtesy of Merit Mile.
1 min to read
Black Books' Used Vehicle Retention Index declined 0.7 percent from April to May. Anil Goyal, senior vice president of Automotive Valuation and Analytics for Black Book, predicts further declines in the coming months. Photo courtesy of Merit Mile.
Currently, the retention index is at 112.3, down from 113.1 in April. In a 12-month analysis, the index has dropped 5.6 percent from May 2016.
Ad Loading...
The index declined as cars and trucks saw increased depreciation in May following a strong spring season during April. The index increased slightly from 113.0 in March to 113.1 in April. It was the first time the Index saw an increase dating back to Jan. 2015.
From April to May, sub-compact cars fell 1.6 percent, full-size cars dropped 0.7 percent, mid-size cars fell 0.6 percent, and sporty cars fell 1.0 percent. Premium sporty cars, on the other hand, saw a 0.4 percent increase.
In the trucks market, small pickups increased 0.5 percent from April, while full-size luxury utilities increased 0.1 percent, and full-size pickups held steady.
“There is not a lot of surprise in the May numbers, particularly after seeing arguably the strongest spring-season lift on record over the last three years in April,” said Anil Goyal, senior vice president of Automotive Valuation and Analytics for Black Book. “It is expected that we will see more declines in the Index in the months ahead as we move deeper into the year, particularly driven by softness among car segments.”
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.