Source: Canadian Black Book
Canadian Black Book’s Retained Value Index dipped in October for the first time in seven months, by 0.2 index points, after previously experiencing month-over-month gains.
The index looks at the actual retained value of two to six year-old vehicles in the Canadian market.
“What goes up, must come down. We’ve experience an impressive run of used vehicle value success over the past seven months,” said Brian Murphy, VP Research & Analytics at Canadian Black Book. “Even though the Index has dropped, it is very slight and overall retained value is still just below record high levels.”
CBB noted the big winners of the month as the compact car segment, up 10 points from the same period in 2018 — and up 0.9 points from the previous month. The sub-compact car segment declined slightly this month but is still up 9 points from 2018.
The compact luxury CUV/SUV category increased by 0.6 points MOM, though it also dropped 3 points YOY. The struggling prestige luxury car segment managed to jump 1 point this month.
The luxury car segment was among the losers of the month, declining 2 points MOM and 7 points YOY. Minivans decreased 6 points YOY, and small pickups dipped 1 point in October and 6 points from the same period last year.
“The Canadian dollar hit a three-month high at the end of October at 0.765 USD,” said CBB in its news release. “The higher dollar does make exporting used vehicles to the U.S. market less attractive, yet still at a level where profits can be had.”
It is to be seen how the index will shift over the winter period.
Source: Canadian Black Book
