Auction Retention Index for the Top 10 Makes September 2020

Auction Retention Index – ARI

The Auction Retention Index is a good indicator of market stability.

Theoretical retention is at or around 100%, but with market turbulence, this index can greatly fluctuate. 

If the index is under 100%, wholesale inventory is being transacted below the target price, meaning cars are cheaper than they normally should be. 

For example, a 2018 Honda Accord should fetch $16,000 on the wholesale market, if the retention index is 92%, this vehicle is likely to bring $14,720. 

After a sharp index decline, a period of recovery is usually witnessed as prices correct and the index may be higher than 100%. 

There are make/model specific indexes as cars depreciate differently depending on the segment. Below is a chart showing the overall auction retention index from February 2020 to September 2020. Notice the COVID-driven sharp dip between March and May 2020. 

The top 10 car makes for sale currently at U.S. auctions are:

Analysis of the Auction Retention Index:

As of Sept 24, 2020.

Vehicles for Sale: 96,044
Vehicles for Sale, Buy it Now: 44,604