The Value – Issue #20: Summer 2019 Proving to Be The Best Ever For Used Vehicle Values
August 20 2019
Welcome to Canadian Black Book's - The Value. Our goal is to provide our clients and partners with news, event updates, new initiatives and opinions from Canada’s trusted source for vehicle values and automotive insights. In this edition we cover:
Another very warm summer month has gone by and we see another very warm all-time record set by the Canadian Black Book Retained Value Index of 107. The index for all industry segments is up 3.6 points from the same time last year, and up 0.7 percent from last month's record high. Comparing back to July 2017 the index is up 6 points, an impressive gain that shows how strong used values continue to be here in Canada. General speaking, the index gain of 6 points in two years means a car of a similar age/mileage and configuration is now retaining 6% more of its value than it was just 24 months ago.
The used car business in Canada appears stronger than ever and growing fast. A review of the more recent published Statistics Canada results (the latest data is as of May) for Used Car Dealers, we see that the growth is an impressive 12% this year alone.
When we dive below the surface, we see different stories for different segments of the market. This month Compact Car sets a record since the index began tracking with 2005 data. Perhaps those shockingly high gas prices earlier this summer helped that along? The mid size car segment also sets an all-time record high. This is particularly noteworthy, as much has been written about the products in this segment that are being discontinued. It appears the used product available are appreciated at the auction by the sharp-eyed bidders and are bring very good money.
Compact crossover also shows strength in July with an increase of 2.3 points from last month, not surprising for such an in-demand product segment. Mid-Size Crossover/SUV is up by 2.5 compared to last month and the perennial Canadian favorite full size pick-up has posted a 2 point gain from last month.
On the downside, some of the luxury segments appear to be taking it on the chin again this month. Compact Luxury CUV/SUV is down by 5.3, Luxury Cars are down by 4.1 and Prestige Luxury Car is off by 4.3 points compared to last year. Sporty car is off 1.4 points which is not surprising as the selling window for these cars starts to close.
Enjoy the rest of the summer and we will see you again next month with our index update.