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2018 Best Retained Value Awards Reveal Record Gains Across the Board

Some More Good News After Another Year of Record New Car Sales

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Markham, ON, February 13, 2018 - The 2018 edition of the Canadian Black Book Best Retained Value Awards, announced today, were highlighted by a record for overall industry average retained value of four year old vehicles in Canada. At 53 per cent, this surpasses the previous record of 51 per cent, set just last year. This is a significant increase given the number of categories and 282 total vehicles measured.

This year marks the eleventh annual presentation of these prestigious auto industry honours. The 2018 Canadian Black Book Best Retained Value Awards are awarded in 20 vehicle categories and for the second year, three ‘Overall Brand Awards’.

The record year for retained values is largely influenced by a few strong segments and individual vehicles. The 2014 Jeep Wrangler has smashed the all-time retained value record, by holding 91 per cent of its original MSRP. The Jeep Wrangler has now won in eight consecutive years. The ‘Small Pick-up’ category, as a whole, retained an impressive 73 per cent of its value. The next strongest categories are the ‘Full-Sized Luxury Crossover/SUV’ and ‘Full-Sized Pick-up’ both retaining 61 per cent of original MSRP.

“What a great year for retained values,” says Brad Rome, President, Canadian Black Book. “That said, the feeling is that we are getting close to the turning point where values are going to begin to retreat. Market conditions, most notably the increase in supply in the U.S. and Canada is expected to put downward pressure on prices moving forward,” he says.

Other notable high performing winners this year, helping to support the overall record average are: the first time winner Chevrolet Corvette in ‘Premium Sports Car’ retaining an impressive 88 per cent of its value; the Toyota FJ Cruiser in ‘Mid-sized Crossover/SUV’, the previous all-time retained value record holder from last year (at 83 per cent), winning for seven of the last eight years, and holding 86 per cent of its value from 2014; and the Toyota Tacoma, in the ‘Small Pick-up’ space has won for an unprecedented nine consecutive years and held 81 per cent of its value after four years, just one point down from last year.

“If you are the owner of one of these award winners and hold a loan or in some cases even a lease for the vehicle, you could be in a better position when it comes time to get into a new vehicle,” says Brian Murphy, VP Research and Editorial, at Canadian Black Book. “High depreciation, the single most expensive cost of owning a vehicle, can be a back breaker, especially if you are in a long-term loan, holding many consumers in negative equity where their vehicle is worth less than the outstanding amount due on the loan for almost the entire term of the loan,” he adds.

For example, after four years of owning a vehicle that only retained 30 per cent of its value, versus one that retained 50 per cent, the loss would be $7,000 more in depreciation on a typical $35,000 car. The weaker value retention will affect what the current car is worth at the end of the loan, and if any losses are rolled into the next loan, it will result in larger payments for the new car, due to a low trade-in value.

“Car buyers need to understand depreciation and the issue of negative equity and do their research on vehicle values before they head into the dealership.” Murphy says.

The category ‘Sub-Compact Car’ fairs the poorest for retained value, holding a category average of just 40 per cent, with some individual cars dipping into the twenties. Other categories that currently struggle with retained value, are ‘Luxury Car’ (43 per cent), ‘Compact Commercial Van’ (45 per cent), ‘Mid-sized Car’ (46 per cent), ‘Full-sized Car’ and ‘Compact Car’ (both at 47 per cent). Overall trucks and Crossover/SUVs seem to perform best which reflect strong market demands for these types of vehicles in the used market.

Certain brands also excel in terms of retained value. For the second year, Canadian Black Book is awarding ‘Overall Brand Awards’ that recognize retained value across a brands’ full product line up. The winners are for ‘Car’ – Toyota (56 per cent); ‘Truck/Crossover/SUV’ – Toyota (71 per cent); ‘Luxury’ – Porsche (66 per cent). Toyota again dominated the awards with eight category wins, two brand wins and 14 total mentions (top three in a category).

Other brands had impressive showings for 2018. FCA posted its best ever showing with seven mentions and four category wins in ‘Compact Crossover/SUV’ with Jeep Wrangler; in ‘Compact Commercial Van’ with RAM Cargo Van; in ‘Full-sized Van’ with RAM ProMaster, and the Canadian built Dodge Challenger in ‘Sports Car’ for the seventh year straight.

GM also shows its best year yet with six mentions and two category wins in ‘Premium Sports Car’ – Chevrolet Corvette; and in ‘Full-size Crossover/SUV’ – Chevrolet Tahoe.

Mercedes-Benz topped the luxury category with seven total mentions and three category wins in ‘Entry Luxury Car’ - Mercedes-Benz CLA-Class; in ‘Full-size Luxury Crossover/SUV’ - Mercedes-Benz G-Class; and in ‘Compact Luxury Crossover/SUV’ - Mercedes-Benz GLK-Class.

“Congratulations to all the winners of the 2018 Canadian Black Book Best Retained Value Awards. You all deserve it for producing vehicles that Canadians want.” said Brad Rome.

CanadianBlackBook.com maintains a database of car and truck values dating back to 2002. The website offers three free values calculators - one that allows consumers to look up trade-in values before they head to the dealer, another that shows future values, and a third that shows average asking price.

2018 Canadian Black Book Best Retained Value Award Results:

Overall Brand Awards

Car

Toyota

Truck/Crossover/SUV

Toyota

Luxury

Porsche


MODEL

1st

2nd

3rd

Sub-compact Car

Toyota Prius c

Toyota Yaris

Kia Soul

Compact Car

Toyota Prius v

Toyota Matrix

Honda Civic

Mid-size Car

Toyota Camry

Subaru Outback

Honda Accord

Full-size Car

Toyota Avalon

Dodge Charger

Chrysler 300

Entry Luxury Car

Mercedes-Benz CLA-Class

Volvo XC70

Lexus ES350

Luxury Car

Lexus GS Series

Audi A7

Mercedes-Benz E-Class

Premium Luxury Car

Porsche Panamera

Mercedes-Benz S-Class

Mercedes-Benz CLS-Class

Premium Sports Car

Chevrolet Corvette

Porsche Boxster

Porsche Cayman

Sports Car

Dodge Challenger

BMW 2 Series

Mazda MX-5

Small Pickup

Toyota Tacoma

Honda Ridgeline

Nissan Frontier

Full-size Pickup

Toyota Tundra

GMC Sierra 1500

GMC Sierra HD

Minivan

Toyota Sienna

Honda Odyssey

Kia Sedona

Full-size Van

RAM ProMaster

Mercedes-Benz Sprinter

Nissan NV Vans

Compact Commercial Van

RAM Van

Ford Transit Connect

Compact SUV

Jeep Wrangler

Nissan Xterra

Toyota RAV4

Mid-size SUV

Toyota FJ Cruiser

Toyota 4Runner

Toyota Highlander

Full-size SUV

Chevrolet Tahoe

Toyota Sequoia

Chevrolet Suburban 1500

Compact Luxury SUV

Mercedes-Benz GLK-Class

Audi Q5

Range Rover Evoque

Mid-size Luxury SUV

Porsche Cayenne

Lexus GX460

Lexus RX350

Full-size Luxury SUV

Mercedes-Benz G-Class

Land Rover Range Rover Sport

Land Rover Range Rover

Media Contact: Conrad Galambos,905.979.7039, cgalambos@canadianblackbook.com,

Winner Presentation Photos
For high res Winner Presentation Photos taken from the Canadian International Auto Show Media Preview Day please Click Here

Graphic Downloads (Awards logo, CBB logo etc)
Click Here

Annual CBB Award Winners - canadianblackbook.com/cbb-awards.html

Reference the ‘Backgrounder – CBB2018 Retained Value Awards.doc’ for more highlights, topics of interest, background and statistics.