The Canadian Black Book Used Vehicle Retention Index has reached 106 — an all-time record for May 2019, and the highest it has reached since the index tracking was launched in January 2005.
“Across the industry and the twenty-one vehicle segments tracked by Canadian Black Book, used values have never been stronger,” said CBB. “The Compact Car segment has helped boost May’s index along to this high level by posting a record high mark of 114, a gain of 6.5 points from last year and 1.7 points from last month.”
CBB said it’s possible that higher gas prices in May helped elevate the demand for these vehicles during that period.
Like compact cars, the sub-compact car category also revealed impressive gains, with the smallest car size segment up nearly approximately 1 point from April, and up a significant 7.4 points from May 2018.
Values in the mid-size crossover/SUV category also increased — up 2.1 points from last month. CBB said these values once again demonstrate “how hot this in-demand segment” is.
Full-size cars were down more than 3 points, year-over-year, but increased 1.3 points from April 2019.
The Luxury car category took a dive, down 3.3 points YOY, and down a little more than half a point from last month. “Prestige” luxury car values decreased nearly five points YOY, marking the segment as the biggest decliners of all segments. Small pickup trucks and sports cars dropped 0.7 points and 0.4 points respectively.
“With rising levels of supply on both sides of the border it remains our expectation that values will slow down,” said CBB. “However, with a continued fairly weak Canadian dollar, the shipping of used cars to the U.S. market remains a very profitable enterprise and helps to keep Canadian values high.”
