The Canadian Black Book Used Vehicle Retention Index has again hit a new all-time record high in the month of September. The new top score is 108.3 is up a full index point from last month. As a reminder, our index is based on January 2005 as a starting point, so at that time the index commenced at 100.
Over the many years of data, almost 15 now, we track how some 20 market segments perform. The index has been as low as 74.8 in February of 2009 and has now risen by more than 33 points to the present level. By way of example that means a used vehicle that was worth $10,000 back in February of 2009 would not be worth nearly $15,000. A massive move up and one that makes a big difference to how the Canadian industry functions.
This time around we see that Compact Car (118.4), Compact Crossover (101.9) and Mid Size Car (108.2) establish new all time highs in September 2019. It is quite rare for that to happen in one month. Sub-Compact car is also just a small margin off of setting a record high level for retained value.
Looking back to last year it is the Compact Car (+11.5), Full Size Van (+8.2) and Sub-Compact Car (+7.6) that are up the most in the past 12 months. In the past 30 days it is the Compact Car (+2.1), the Sporty Car (+4.) and Sub-Compact car (+1.7) that made the most upward progress.
Turning to the segments that are showing a negative trend there are a number of those worth mentioning. Although the entire industry on average is up 4.7 points since 2018, Compact Luxury CUV/SUV is down by 4.1 points. Luxury Car (-4.4) and Small Pick-up (-4.5) have fallen in value contrary to the market trend. Looking back just 30 days Full Size Car (-1.6), Luxury Car (-1.1) and Small Pick-Up (-1.0) did not follow the trend and lost retained value in September.
Heading into the last quarter of the year we will certainly be interested to see if the market continues its positive trend or we will finally see some negative trending in the marketplace after so many months of record high levels.