The Canadian Black Book Used Vehicle Retention Index reached an all-time high of 103.4 in April 2018, thanks in part to an increase in 2 to 6 year-old used car retained values, according to a CBB news release. The news follows previous records of 103.0 that were set in March 2018 and December 2017.
“In April the Canadian dollar posted a very modest gain of less than half a cent,” said CBB in its news release. “If that trend continues the stronger Loonie will only accelerate the downward pressure on vehicle prices.”
In terms of segment gains, the biggest value winners were the compact and subcompact cars — both of which managed a 7.5 per cent increase from the same month in 2017. “Both segments showed a considerable negative trend back in 2015-2016, to a large extent this is still a rebound from that softening of the market,” said CBB. However, with prices at the pump continuing their upward trend, the question remains as to whether or not the prices of these vehicles will continue to rise.
Mid-size cars also experienced an increase in retained values with a 6.6 per cent gain. Overall, and when comparing April 2018 to March of this year, the big winners were subcompact cars and full-size cars — both of which retained 1.4 per cent more of their value compared to March 2018.
The luxury car segment was last month’s biggest loser in retained value, but this month it’s full-size pickups. This category took a dive by dropping 2.2 per cent from April 2017, while the minivan segment fell 3.6 per cent.
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