Black Book’s used vehicle retention index experienced a small increase in October, although the firm expects this to be the last positive change of the year, according to a company announcement.
The Black Book Used Vehicle Retention Index was 116.3 in October, up 1.5% year-over-year and 0.2% month-to-month.
Seasonal depreciation patterns are expected to take hold through the rest of the year, with vehicle values declining on a wider scale.
The highest month-over-month gains in value were compact crossovers/SUVs, subcompact cars, and mid-size luxury CUV/SUVs, which were up 0.95%, 0.88%, and 0.53%, respectively.
The biggest declines month-over-month came from full-size luxury CUV/SUVs, premium sporty cars; and small pickups at 0.81%, 0.46%, and 0.45%, respectively.
“This Index data can be especially valuable this time of year because it is designed to give automotive professionals and portfolio managers an analytical look into the trends driving segment performance across cars and trucks,” said Anil Goyal, Executive Vice President, Operations for Black Book. “Particularly as we begin to close out the year, it’s important to leverage the Index data and related residual forecasts as dealers and lenders begin to look at their inventory and portfolio makeup, and whether to increase or decrease in any particular segment, and what they want that to look like heading into 2019.”