Canadian Black Book Index Growing At Fastest Pace Ever
December 06 2021
Markham, ON, December 12, 2021 – Canadian Black Book, known in the automotive industry for providing timely, independent, and precise, Canadian Specific vehicle pricing, data, and analytics, released its Used Vehicle Retention Index for November 2021. The Index skyrocketed to another all-time high of 152.6 points growing an incredible 13.2 points compared to October, which was the previous record.
This increase, in November, of +9.5% is far and away the highest ever month-over-month increase since the Index began in 2005, surpassing last month’s mark of +5.1%. Sixteen of the past seventeen months have experienced month-over-month growth in average retained values, industry-wide, with fourteen record months in that timeframe. November 2021 is up by 38% versus November 2020, which is the by far the largest year-over-year gain, beating the record set just last month at 26% compared to October 2020.
“It is exceptional that since the low point in May 2020 at the infancy of the pandemic, we have seen a 65% increase in average retained value across all models in Canada,” says James Hancock, Director, OEM Strategy and Analytics at Canadian Black Book. “The Index graph clearly illustrates how extreme this growth is compared to any other time since CBB began the Index in 2005.”
For November 2021, the segments with the highest value increase were Compact Car with a massive 13.25% monthly increase and 42.15% growth over last November. Sub-Compact Car saw impressive monthly value gains of 12.83% and Compact Crossover/SUV grew by 12.7%. This month saw increases across all segments measured, except Premium Sports Car which decrease marginally by 0.86%, which can be chalked up to seasonality.
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.