Climb Continues for CBB Value Retention Index in June
July 16 2021
Index Now Sits Over 25 Points Higher Than When It Began in 2005
Markham, ON, July 9, 2021 - 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 June 2021. The Index hit 125.1 points, which is another all-time record, eclipsing the previous record by 1.3 points, which was just last month at 123.6 Index points. This is the twelfth consecutive month of increases and tenth consecutive month with an all-time record high.
“This historic rise in value retention for used vehicles in Canada, which the industry has never witnessed, continues,” says Yolanda Biswah, Vice President Sales at Canadian Black Book. “There are some subtle signs that we may soon see some stabilization as prices begin to flatten at wholesale.”
For the third month consecutive, the year-over-year increase for the Index has hit a new record high at 24.5% higher versus June 2020 which stood at 100.5 Index points. For June 2021, all segments measured (21) by Canadian Black Book saw value increases except for Sub-Compact Cars, which declined by -0.02% and Sub-Compact Luxury CUV/SUV, versus last month.
Leading the way in terms of monthly value retention for May was the Full-Size Van segment with a 5.9% rise over May and 25.9% growth versus one year ago. The Compact Van category is a close second with a 4.5% month-over-month increase. Of particular note is the astonishing rise in retained value year-over-year of the Sports Car segment which grew by 40.2%, since June of 2020.
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.