The Canadian Black Book Used Vehicle Retention Index decreased for the eighth consecutive month in January, when it sat at 144.8 points — representing a 1.4% month-over-month decrease. Year-over-year, the index has slipped 8.5%.
Based on CBB’s update, the index was as low as 100.5 points in late summer 2020. It then picked up momentum and peaked in March 2022 at 165 points. The decline from then is notable when considering the January 2024 data, but the decrease has slowed.
“Exporters have been increasing activity due to early indications of a strong U.S. tax season/spring demand. As a result, Canadian wholesale declines have slowed from the previous pace seen in December,” said David Robins, Principal Automotive Analyst and Head of Canadian Vehicle Valuations at Canadian Black Book, in a statement.
CBB’s Used Vehicle Retention Index, which dates back to January 2005, is calculated using its published Wholesale Average value on two- to six-year-old used vehicles — as a percent of original typically equipped manufacturer’s suggested retail price (MSRP).
