What is the story line behind the index actually inflecting positively in the back half of 2017? Up from 110 level to ~112ish the rest of the way?
There are a couple of reasons that should be noted which are causing the upward movement in question.
First, if we compare the non-SA and the SA values, you can see the removal of the seasonal pattern results in the pure appreciation of prices.
Second, If you look closely at the SA chart, you will see the substantial decline witnessed in February. Based on our knowledge and understanding of the market, we believe there is still potential for the market to self-correct through the remainder 2017 and bringing it more in-line with the more natural average rate of annual depreciation. A slight pullback on incentives in July and August is helping to drive this slight uptick and correction on the used side of the vehicle market.