Used vehicle prices declined through November.
Black Book’s November used vehicle retention index released Tuesday showed a decline of 1.6 percent from October. The Black Book Used Vehicle Retention Index is calculated using the 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.
“Wholesale prices for the 2-6-year-old vehicle segments that comprise of Black Book’s Used Vehicle Retention Index continued to decline in November, although the rate of decline is smaller compared to the previous two months,” said Alex Yurchenko, Chief Data Science Officer at Black Book. “With uncertainty in the economy and weaker used retail demand, we started to see declines in retail listing prices, although not at the same rate as wholesale prices. We expect used prices (both wholesale and retail) to continue to drop through December and into the new year as new inventory levels will continue to improve.”
The index fell to 171.4 and is 9.7 percent below November 2021. The index is still 49.6 percent above the March 2020 level.
“While used vehicle sales are starting to dip, it will help with vehicle valuations, bringing vehicle prices back in line with historical norms. This will open up more consumers, as we move into the new year and the ever-exciting tax timeframe.
Jeremy Beck, NIADA Vice President
NIADA Vice President Jeremy Beck said the price dip could soon bring more customers and opportunities for dealerships.
“We believe this is a good sign for auto dealers,” Beck said. “While used vehicle sales are starting to dip, it will help with vehicle valuations, bringing vehicle prices back in line with historical norms. This will open up more consumers, as we move into the new year and the ever-exciting tax timeframe. Independent dealers need to take this time to get their inventory and marketing in shape for the selling season.”
