Yolanda Biswah, Senior Vice President and General Manager, CBB
Canadian Black Book announced the results of the 15th edition of its Best Retained Value Awards, which points to “extreme growth” in used vehicle values.
When averaged across all segments and vehicles in Canada, CBB said the results show that prices are at an all-time high for used vehicles—with the new record for used values averaged among all models in Canada reaching 64% of MSRP after four years. The last record high was 61.5%, set in March 2021.
According to CBB’s Senior Vice President and General Manager, Yolanda Biswah, we are currently witnessing “the most rapid progression of vehicle values ever,” which the awards clearly illustrate.
“We all know that supply issues are a key factor in driving prices up, however, we must also recognize that the overall quality of vehicles has also gone up, which is another significant component contributing to recent value growth,” said Biswah.
CBB said its Best Retained Value Awards are typically revealed once a year. However, the latest awards underwent certain changes—such as a change in the announced date: moving forward, the awards will be announced in November. The measured vehicle categories also changed: they were trimmed from 23 to 19, and the algorithm used to measure best retained value will be adjusted to consider sales volumes.
The changes are meant to align the awards with the broader automotive industry changes, such as the proliferation of zero-emissions vehicles (ZEVs) and improvements in technology around ZEVs. CBB said these models are now holding value much better than earlier versions.
The new awards also include three ZEV categories: Overall Brand: ZEV, ZEV Main, and ZEV Luxury. When considering value growth, which CBB notes is apparent in its ZEV Main category, this year’s winner (the Volkswagen e-Golf) held 57.1% of MSRP after four years—the most for a ZEV so far. For the awards announced in March, the winner at the time held 56% of MSRP after four years, while 2019’s ZEV winner held 51%.
“ZEVs are getting much more attention across the board as all OEMs launch new models and plan for the future. The retained value gap between ICEs and ZEVs is closing quickly,” said James Hancock, Director of OEM Strategy and Analytics. “Battery degradation concerns are dissolving in the market as consumers are seeing 10-year lifespans and OEMs are commonly placing 10-year warranties on batteries.”
Couple that with increased average ranges and the industry benefits from a user base and potential user base that “trusts the product more and therefore are willing to pay more for used units,” said Hancock.
As for CBB’s Overall Brand awards for November 2021, for the second the second time in a row, Honda takes the Overall Brand: Car award; GMC wins the Overall Brand: SUV/Truck; Volkswagen gets the Overall Brand: ZEV award; and KIA takes top honours and it’s first ever CBB Best Retained Value Award in the new category of Overall Brand: Most Improved. In the Overall Brand: Luxury award, Porsche wins for the third consecutive year.
“The vehicle that held the largest portion of its MSRP over the past four years and has broken the all-time record for retained value is the Chevrolet Corvette in the new Sport Car: Luxury category,” said CBB in its news release. “This iconic sports car held an incredible 88.5% of its value over that time, breaking the previous record of 87.1% set last awards by the Toyota Tacoma.”
The Tacoma also beat its old record by posting 88.3% this time around, while the Jeep Wrangler surpassed its old record as well, at 87.2%.
For the full list of winners, view the chart below:
CBB plans to release a new set of awards in February of 2022, with the new Canadian Black Book Best Residual Value Awards measuring future value.
