February 2018 experienced the highest index level for the month since tracking began in 2005, according to the Canadian Black Book Used Vehicle Retention Index, which provides insights and statistics about the health of the used car market in Canada.
Based on the report, the index is at 102.5 — up 2.5 per cent points from February 2017. In January, values fell 0.7 per cent from December but managed to increased by 0.2 points to reach the current high in February.
The most gains were seen in the compact car category with an increase of 6.1 per cent year-over-year, and in the subcompact car segment with a 6.0 per cent increase in numbers. Both groups had previously experienced “significant downward price pressure” but have recently rebounded.
Segments that experienced the biggest losses in YOY values include minivans with a 5.3 per cent decline, and full-size pickup trucks with a 2.2 per cent reduction.
“The largest advances month-over-month are the Sports Cars at 1.5 per cent and the Mid-Size Cars at 1.6 per cent. Surely the Sports Car value gain is a sign that spring is indeed around the corner,” said Canadian Black Book in its news release. “Conversely, the largest retreats from a MOM point of view, were the Minivans at -1.7 per cent and the Small Pickup Trucks at -1.4 per cent.”
The Canadian dollar, which has the power to greatly impact the used vehicle market, dropped $0.03 in February, slightly enhancing the attractiveness of used vehicle exports.
View the Canadian Black Book Used Vehicle Retention Index here.
