Canadian Black Book Retention Index Experiences Largest Single-Month Increase

November 03 2021
CBB

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 October 2021. The Index reached another all-time high of 139.4 points growing 6.8 points compared to September. This increase of 5.1% is the highest ever month-over-month increase since the Index began in 2005, surpassing March of 2021 at +4.1%. Fifteen of the past sixteen months have experienced growth in average retained values. October 2021 is up by 26.1% versus October 2020, which is the largest year-over-year gain ever.

“The Index graph says it all. The extreme upswing on the Index is clearly unprecedented and so obviously out of rhythm with how moderately it had acted, up until 2020,” says James Hancock, Director, OEM Strategy and Analytics at Canadian Black Book. “What’s more shocking than this extreme spike in values, is that we do not have a clear end in sight in terms of supply shortages and therefore price increases.”

For October 2021, the segments with the highest value increase were Near Luxury Car with a massive 8.6% monthly increase and 33.3% growth over the past year. Compact Car saw impressive monthly value gains of 7.4% and Compact Crossover/SUV grew by 6.6%. This month saw increases across all segments measured, with no segment experiencing any value 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.