May was a strong month for used vehicle values as shown by a slight growth in Black Book's Used Vehicle Retention Index.
The Used Retention Index for May was 114.4, which represented a 0.7% increase from the month before. This was the first increase of 2019.
Subcompact cars had the best showing through the month, as values for the segment increased by 0.85%. Sporty, midsize, and full-size cars also had positive showings, as values for the segments increased 0.72%, 0.75%, and 0.61%, respectively.
Luxury vehicles continued to struggle in May, with values for luxury cars falling 0.94% and values for prestige luxury cars falling by 0.66%.
Truck segment vehicles saw relatively flat values through May. Expectations for the segment are for retention to remain firm due to the demand shift away from cars following the spring tax season.
“We don’t expect the strong spring season to influence the trend in the coming months. The overall depreciation to fall further in 2019 compared with last year,” said Anil Goyal, executive vice president, operations for Black Book. “However, all bets are off if tariff threats become reality, significantly impacting the auto industry.”