CBB Index Decreases in February
New Car Inventory Remains a Challenge
Canadian Black Book today released its Used Vehicle Retention Index for February 2023, which sits at 157.9 points (a –0.2% MOM decrease). Year-over-year, the Index has decreased –3.5%. Click here to obtain a copy of the Index.
“As we head towards the spring, the wholesale market continues its overall decline in Canada. New car inventory remains a challenge, which has been driving the prolonged high values in the Retention Index,” says David Robins, Principal Automotive Analyst and Head of Canadian Vehicle Valuations at Canadian Black Book.
The Index peaked in March of 2022 at 165 Index points. Preceding the March peak was a run of unprecedented growth in used values beginning in the late summer of 2020, when the Index was as low as 100.5 points.
Month-over-month, 10 segments saw growth, while 17 segments declined in value. Sporty Car (+4.16%), Full-Size Van (+3.48%), and Full-Size Car (+2.89%) saw the greatest strength. Near Luxury Car (-1.71%), Luxury Car (-1.16%), and Compact Crossover/SUV (-0.77%) declined the most.
Sporty Car, however, saw the largest year-over-year decrease at 12.53%. The highest year-over-year increase was Prestige Luxury Car at 16.00%.
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.
ABOUT CANADIAN BLACK BOOK
For 60 years, Canadian Black Book has been the trusted and unbiased Canadian automotive industry source for vehicle values. Today the company has grown into a leading data provider of vehicle valuations, residual value forecast solutions, and VIN decoding. Canadian Black Book tools and information are considered ‘The Authority’ for vehicle values not only by car dealers and manufacturers but also the leasing, finance, insurance, and wholesale sectors. In 2020 Canadian Black Book brought to market its Enhance Vehicle Matching (EVM) solution, which will allow the industry to decode more consistently 17 digits VINs down to a specific trim package allowing a more precise vehicle valuation.
Posted in: Press Releases