Summer provided the used vehicle industry with a boost, as values during this period ended on a “scorching August note,” writes Canadian Black Book in The Value report.
CBB’s Used Vehicle Retention Index revealed another new record for two-to-six year-old vehicles, reaching 107.2 — up a significant 3.7 points year-over-year. Furthermore, the index showed a 0.3 point gain from July “continuing a very positive trend that shows a solid 2 point gain across all industry segment so far in 2019.”
The compact car vehicle segment, rumoured to be dead, displayed strong retained values; the category was up 10 points from 2018, and 2.5 points from last month. It also reached a new record of 116.3. Mid-size cars also set a new record of 107.4, an increase of 5.5 points from last year and 1.4 points from July 2019.
“These are impressive records in a market where the commonly held belief is that market demand fully switched over to SUV/Crossover,” said CBB. “Full-size cars are also up by 2.2 points this month. Car values are strong!”
In terms of segments that lagged, the Compact luxury CUV/SUV category declined by 5.4 points YOY and 1.1 points from last month. No record low values were set, but the segment was at an all-time high in July 2018, and has since declined. That being said, the smaller luxury CUV/SUV category outperformed the industry average for retained value, said CBB.
Minivans decreased by around 4.1 points YOY, and by 1.7 points from July.
