The Value – Issue #21: Summer 2019 Sizzling For Used Vehicle Values – CBB Index Shows
September 16 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:
The last hot month of summer has ended on a scorching August note, as another new record for value retention has been set for the CBB Used Vehicle Retention Index market average. The new record for 2-6 year old vehicles is 107.2, up a remarkable 3.7 points from last year at the same time. The index also shows a 0.3 point gain from July continuing a very positive trend that shows a solid 2 point gain across all industry segment so far in 2019.
Looking at the segments we had some that outperformed the index and of course a few that lagged behind the progress of others.
Despite rumours that cars are dead the market strongly disagrees when it comes to retained value. Compact cars were up 10 points from last year, 2.5 points from last month and set a new record of 116.3. Mid size cars also set a new record of 107.4 which is up 5.5 points from last year and 1.4 points from last month. These are impressive records in a market where the commonly held belief is that market demand fully switched over to SUV/Crossover. Full size cars are also up by 2.2 points this month. Car values are strong!
On the other end of the temperature scale we have a few segments that have had a chilly August. There were no record low values set, but we did see Compact Luxury CUV/SUV fall by 5.4 points from last year and 1.1 points from last month. This segment was at a an all time high last year in July but has declined since that time. However the smaller luxury CUV/SUV’s still outperform the industry average for retained value. We have also seen minivans fall some 4.1 points from last year and 1.7 points from last month.
This Index serves to offer unbiased and accurate insights and statistics regarding the health of the used wholesale vehicle market in Canada.
The Canadian Black Book Used Vehicle Retention Index is calculated using Canadian Black Book’s published Wholesale Average value on two- to six-year-old used vehicles, as a percent of original typically-equipped MSRP. Canadian Black Book’s Wholesale Average is a benchmark value for used vehicles selling in the wholesale auctions with the vehicle quality in average condition. The index is weighted based on used vehicle sales volume and adjusted for seasonality, vehicle age, mileage, condition, and inflation (MSRP).
Aggregated from daily vehicle value updates, and captured throughout thousands of wholesale vehicle transactions across the country, the Canadian Black Book Used Vehicle Retention Index represents data across all regions of Canada. The Index is based on a comprehensive list of vehicles included in the Canadian Black Book wholesale database, and includes no bias toward any brand, data source or region, ensuring an accurate report of the used vehicle market.