Canadian Black Book Value Retention Index Continues Unprecedented Ascent
June 04 2021
Another Record Broken with Highest Year-Over-Year Increase Ever
Canadian Black Book, the provider of Canada’s industry leading used vehicle valuation data and residual value forecast solutions, release its Used Vehicle Retention Index for May 2021. The Index hit 123.6 points, which is another all-time record, eclipsing the previous record by 2.3 points, which was just last month at 121.3 Index points. This is the eleventh consecutive month of increases and ninth consecutive month with an all-time record high.
“This is a unique situation in the history of used values in Canada and across North America. It truly is unprecedented to have value rise, without the slightest delay on this rapid ascent and no real signs of falling in the short term,” says Yolanda Biswah, VP Sales at Canadian Black Book. “What is telling is the astronomical growth in values since just twelve months ago.”
For the second month in a row, the year-over-year increase in the Index has been the highest ever at 23% higher versus May 2020 which stood at 100.5 Index points. For May 2021, all segments measured by Canadian Black Book saw value increases except for Sub-Compact Cars, which declined by -1% versus last month.
Leading the way in terms of monthly value retention for May was the Full Size Car segment with a 6.7% rise over April and 32.7% growth versus one year ago. The Premium Sports Car category is a close second with a 5.8% month-over-month increase and a 28.2% climb from this time in 2020. Of particular note is the astonishing rise in retained value year-over-year of the Sports Car segment which grew by 45.3% over that time.
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 an 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.
ABOUT CANADIAN BLACK BOOK For almost 60 years, Canadian Black Book has been the trusted and unbiased Canadian automotive industry source for vehicle values. Today the company has grown into a leading data provider of vehicle valuations, residual value forecast solutions, and VIN decoding. Canadian Black Book tools and information are considered ‘The Authority’ for vehicle values not only by car dealers and manufacturers but also the leasing, finance, insurance, and wholesale sectors. In 2020 Canadian Black Book brought to market its Enhance Vehicle Matching (EVM) solution, which will allow the industry to decode more consistently 17 digits VINs down to a specific trim package allowing a more precise vehicle valuation.