The first industry index of the year from CBB is still showing strength and health in values, coming off a record year for retained values in 2019. That said, this month’s level did hold just short of a new monthly record. The January 2020 industry wide index level of 108.2 is only off the record high of November 2019 by 0.3 of an index point, which speaks to a high level of used vehicle retained values to kick off the new year.
The Compact Car segment sets a new all-time high of 118.3,
which is up 8.3 points from January of last year and a half point from last
month’s mark. Sub-Compact Cars set
another all-time category record high of 110.9, up a remarkable 12 points from
last year and 0.6 from last month. With
many industry commenters and OEM line-ups turning their back on “cars” it is
interesting to see this rebound in values.
Cars, especially entry level models, are often the choice for consumers
looking for the most cost effective way of getting to work every morning.
Looking to a larger format, another category displaying
great retained value strength in January is the Full-Size Van. This segment
made impressive gains of 9.3 points compared to January of last year.
On the negative side, this month saw compact Luxury CUV/SUV fall
by 5.4 points versus January one year ago and a 2.3 points decline from
December 2019. The segment is certainly
in demand by Canadians, yet more options and greater levels of supply produce
negative value retention pressure.
Minivans have also experience a drop off of 5.4 index points
since the same month last year and a 1.2 points decline from last month. This continued decline to 105.2 index points,
in one of the weaker segments, reflects lower market demand for a segment that
has fallen out of favor for the SUV alternative options.
Canadian Black Book wants to wish you all the best for a happy,
heathy and successful 2020 and hoping for another strong year for retained
values in Canada.