Canadian Black Book Value Retention Index Reaching New Heights
May 05 2021
Highest Retained Value Ever and Largest 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 April 2021. The Index hit 121.3 points, which is another all-time record, eclipsing the previous record by 2.2 points, which was just last month at 118.6 Index points. This is the tenth consecutive month of increases and eighth consecutive month with an all-time record high.
“At the beginning of this growth spurt in retained values, we were describing values as if they were on a rollercoaster. The trajectory that we are witness to currently is no longer categorized as a rollercoaster, it is more like a ride up the CN Tower,” says Yolanda Biswah, VP Sales at Canadian Black Book.
Year-over-year, the Index is up 17% from 103.7 in April of 2020, which is the largest year-over-year increase in the history of the Index. For April 2021, all segments that Canadian Black Book measures saw increases. Leading the way with positive value retention was the Sports Car segment with +7.7% and Premium Sports Car at +5.1% growth. Leading the way in the Trucks/SUV segments were Full-Size Pickups at +3.8% and Mid-Size Crossover/SUV at 3.75%.
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 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 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 more consistently decode 17 digit VINs down to a specific trim package allowing a more precise vehicle valuation.