Canadian Black Book’s Used Vehicle Retention Index has revealed a new record high for August 2018. The high level index, which reached 103.6 and bested the previous month’s record, was largely achieved due to a strong economy and favourable exchange rates for continued used vehicle exports to the U.S.
In terms of specific vehicle categories, the index revealed that compact cars were down two points from July 2018, but remain 12 points above its value a year earlier. Compact luxury CUV/SUV remains in-demand, dropping a mere one point from last month but up a significant 31 points year-over-year. Full-size crossovers took a slight dive by two points in August, and decreased considerably from its summer 2016 record levels.
Full-size SUVs and pickup trucks are still going strong, having gained nearly two points from July 2018, though still below the record levels it reached in the summer of 2016. Luxury cars were also down, by four points, from the previous month.
Mid-size cars are doing much better, up nearly six points, “setting a new record level for a segment that is on the endangered species list for a few OEM’s,” according to CBB. “Sub-Compact Car, which has struggled in recent times, has posted a gain of almost 12 points this month to come within striking distance of its previous record high from 13 years ago. Higher fuel prices are certainly helping this along, as well as much improved product offerings in the segment.”
CBB also advises caution as, if any vehicle types or nation is singled out for auto tariffs by the U.S., the coming months could see very dramatic shifts in value.
