Canadian Black Book has announced the release of its second Used Vehicle Retention Index, revealing a year over year growth in December 2017.
Last December saw a 3.8 per cent gain in values YOY compared to the same period in 2016, and a month over month growth of 0.6 per cent over November 2017. The MOM growth is considered to be the highest increase since July 2017.
The Index also reveals that compact and subcompact cars were among the strongest segments by the end of 2017, demonstrating a 7.0 per cent and 7.6 per cent gain respectively.
During this period, midsize crossover and SUVs dropped 2.0 per cent and had been on a steady decline every month in 2017.
“Continued weakness in the segment is expected as exports to the U.S. slow, with a rising American supply and falling prices,” said Canadian Black Book in its news release. “Over the course of 2017, the segment was down almost 5.0 per cent on average, for each month over month score.”
Midsize luxury CUV/SUVs also declined, dropping another 0.1 per cent in value. The category also experienced an average MOM decline of 3.3. per cent for the year. And full-size crossovers and SUVs experienced a 1.7 per cent growth in December, and an average MOM decline of 3.5 per cent for 2017.
Full-size pickup trucks saw some improvement in the fourth quarter of 2017, but ended the year with an average MOM decline of 0.4 per cent.
“In general, as supply of products rise across the board, on both sides of the border, prices domestically are expected to fall,” said Brian Murphy, Vice President Research and Editorial, Canadian Black Book.
Click here to view the full Retention Index.
