01.08.2024
CBB Index Decreases –2.3% in December
Wholesale prices continue to decline at the quickest sustained rate since the beginning of the Covid-19 pandemic
Markham, ON (January 8, 2024) – Canadian Black Book today released its Used Vehicle Retention Index for December 2023, which sits at 146.8 points (a -2.3% MOM decrease). Year-over-year, the Index decreased –6.9%.
Click here to obtain a copy of the Index.
“December saw wholesale prices continue to decline at the quickest sustained rate since the beginning of the Covid-19 pandemic. Increasing new car supply and high interest rates continue to decrease used vehicle demand but we are far from pre-pandemic values,” says David Robins, Principal Automotive Analyst and Head of Canadian Vehicle Valuations at Canadian Black Book.
The Index peaked in March of 2022 at 165 Index points. Preceding the March peak was a run of unprecedented growth in used values beginning in the late summer of 2020, when the Index was as low as 100.5 points.
Month-over-month, 6 segments saw growth, with Compact Van (+2.69%) and Premium Sporty Car (+0.23%) increasing the most. Full-Size Luxury CUV/SUV (-3.39%) and Mid-Size Crossover/SUV (-3.39%) decreased the most.
Sporty Car (+11.08%) saw the largest year-over-year increase. Full-Size Luxury CUV/SUV (-15.28%) saw the largest year-over-year decrease.
The Canadian Black Book Used Vehicle Retention Index is calculated using CBB’s published Wholesale Average value on two to six-year-old used vehicles, as a percent of original typically equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage, and condition. The Index offers an accurate, representative, and unbiased view of the strength of today’s used vehicle market values. The Index dates to January 2005, where the Canadian Black Book published a benchmark index value of 100.0 for the market.
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