CBB Index Increases Slightly to Start 2023
Index increases to 158.2 in January
Canadian Black Book released its Used Vehicle Retention Index for January 2023, which increased slightly. The Index is at 158.2 points, which is a +0.4% increase month-over-month (157.6 December 2022) due to seasonal adjustment. Click here to obtain a copy of the Index.
Year-over-year, from January 2022, the Index is down -2.4%. 2022 began the year with a 44% rise in values compared to January 2021. That rate slowly declined all year until December to end the year off with negative growth over the same month last year.
“For most of last year, we saw what could be described as a calm decline in wholesale values, especially compared to the rapid increase the year before that. The modest increase to begin 2023 is essentially keeping pace with what we saw throughout 2022,” 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, and it now sits –4.5% under that level. 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, 8 segments saw growth, while 15 segments declined in value. Sporty Car (+2.8%), Compact Car (+1.42%), and Sub-Compact Crossover (+0.38%) saw the greatest strength. Compact Van (-7.51%), Near Luxury Car (-1.9%), and Mid-Size Luxury CUV/SUV (-1.49%) declined the most.
Sporty Car, however, saw the largest year-over-year decrease at 15.47%. The highest year-over-year increase was Prestige Luxury Car at 16.75%.
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.
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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.
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