Canadian Black Book recently released its Used Vehicle Retention Index for June 2021, and numbers are still on the rise. The June Index hit 125.1 points which is yet another all-time record, surpassing the previous record placed the month prior by 1.3 points. This makes for the twelfth consecutive month of increases for the Index, as well as the tenth consecutive month of an all-time record high.
According to Yolanda Biswah, the Vice President of Sales at Canadian Black Book, this is a historic rise in value retention for used vehicles in Canada, previously unseen by the industry. However, “There are some subtle signs that we may soon see some stabilization as prices begin to flatten at wholesale,” she says.
The June report is now the third consecutive month where the year-over-year increase for the Index has also hit a new record high. The June 2021 Index comes in 24.5% higher as compared with the June 2020 index, which held 100.5 index points. The index for June of this year saw value increases in all segments measured with the exceptions of Sub-Compact Cars and Sub-Compact Luxury CUV/SUV, as compared to the previous month.
The Full-Size Van segment led the way for monthly value retention in the month of May, with a 5.9% rise over the month as well as 25.9% growth as compared to one year prior. In second place is the Compact Van category, following closely behind with a 4.5% increase month-over-month. The Sports Car segment warrants special attention this month, with an astounding rise in retained year-over-year value with a growth over 40.2% since June 2020. This data indicates that used vehicles continue to retain retail value and remain a reliable and profitable avenue for dealerships.
The Canadian Black Book Used Vehicle Retention Index is calculated using the Canadian Black Book’s published Wholesale Average value on two- to –six-year-old used vehicles, as a percentage of the original typically equipped manufacturer suggested retail price. The calculation is weighted based on registration volume, and is adjusted for seasonality, vehicle age, mileage, and general condition.
Photo Courtesy of Canadian Black Book
