Last week, Canadian Black Book released its Used Vehicle Retention Index for June 2022, which revealed that the market trajectory is no longer straight up, but has begun a slight decline from the highs experienced in March. For June, the Index receded to 161.3 points, down from 162.6 in May, which is a -0.8% difference. The high point for the Index was set back in March at 165.0 Index points. The Index dates to January 2005, where the Canadian Black Book published a benchmark index value of 100.0 for the market.
The report makes note of the fact that the decreases are not substantial, and the market value remains near historic highs, a fact illustrated by the year-over-year values, which are 29 per cent higher than they swerve one year ago. “All 22 vehicle segments that Canadian Black Book measures saw growth year-over-year last month. 2022 began with January showing 44 per cent year-over-year growth, with each preceding month bringing lower annual growth with June being the lowest so far this year,” states the report.
“Trends in overall value, and year-over-year growth are in decline, there is no refuting that. This is a strong signal that finally values may have peaked. However, the reality is that prices are still extremely high compared to July 2020, when prices began skyrocketing,” says David Robins, Principal Automotive Analyst and Head of Canadian Vehicle Valuations at Canadian Black Book.
Only seven vehicle segments saw growth in June, with Prestige Luxury Car (+1.46%), Compact Van (+1.38%) and Mid-Sized Car (+0.94%) seeing the most gains. Of the remaining 15 segments, all of which lost value for the month Sporty Car (-3.90%), Sub-Compact Luxury CUV/SUV (-1.6%), and Near Luxury Car (-1.56%) lost most.
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.