March CBB Index Maintains Historic Climb At a Slowing Rate
April 07 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 March 2022. The monthly CBB Index continues its ascent a new record highs at 165 Index points. This is a new high mark, however, the rate of value growth has begun to slow, compared to late in 2021.
This latest record for Canadian used vehicle values is +0.8% higher than the previous record set in February (163.6 Index points). Year-over-year the Index is up an impressive 39.1% compared to 118.6 Index points in March of 2021.
This is the eight consecutive record-breaking month. In fact, 20 of the past 21 months have experienced month-over-month growth in average retained values, industry-wide, with 18 record months over that timeframe.
“Although value retention growth is beginning to slow down, it is still increasing, and vehicles are worth substantially more than they ever have been. On average, values are now 65% higher across all vehicle models in Canada than they were when the Index began in 2005,” says James Hancock, Director, OEM Strategy and Analytics at Canadian Black Book. “What’s more impressive is that values today are 64.2% higher than the low point during the pandemic, when the Index sat at 100.5points.”
For March 2022, the segments with the highest value increase was Full-Size Van with a massive 8.72% monthly increase and an equally massive 81.11% gain over last March. Full-Size Pickup saw the next highest monthly value gains of a less impressive 2.34% and Luxury Cars were followed with 2.16% growth.
March saw decreases in twelve segments. The largest decrease was felt in Full-Size Car (-4.01%), followed by Compact Van (-2.30%), and Sub-Compact Luxury Car (-1.96%),. Year-over-years however, all four of those segments still has significant gains. 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.