CBB Index Closes Off 2021 Crushing The Year-Over-Year Value Retention Record
January 10 2022
Markham, ON, January 10, 2022 – 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 December 2021. The monthly CBB Index continues its record-breaking climb and has hit a new high at 158.5 Index points, which is a boost of 5.9 points since the previous record month of November 2021.
The year-over-year growth from December 2020 to December 2021 of 42.2%, has crushed the previous record from just last month, which stood at 38%. To put this meteoric rise of wholesale values into perspective, from December 2005 to December 2020, the Index grew by a total of 13% and in just the last 12 months it has grown by over three times that amount. Month-over-month the Index grew by 3.9% since November. Seventeen of the past eighteen months have experienced month-over-month growth in average retained values, industry-wide, with fifteen record months in that timeframe.
“It has truly been surreal to watch this index, which in its first fifteen years grew by thirteen percent and to witness what has happened in 2021,” says says James Hancock, Director, OEM Strategy and Analytics at Canadian Black Book. “Given where we were in the spring of 2020, this rapid ascent of wholesale values could not have been forecast and has eclipsed all expectations.
For December 2021, the segments with the highest value increase was Compact Van with a massive 14.82% monthly increase and 64.66% growth over last December. Sub-Compact Car saw impressive monthly value gains of 9.46% and Full-Size Vans grew by 9.31%. This month saw increases across all segments measured, except Full-Size Crossover/SUV which decrease by 2.92% since last month and Full-Size Pick-up which declined by 3.81%. Year-over-years both segments still show major gains of 32.8% and 24.3% respectively.
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.