The Value – Issue #3: February’s Used Vehicle Retention Index

Welcome to The Canadian Black Book – The Value. Our goal is to provide our clients and partners with news, event updates, new initiatives and opinions from Canada’s trusted source for vehicle values and automotive insights. In this edition we cover:

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Canadian Black Book Used Vehicle Retention Index for February 2018

This Index serves to offer unbiased and accurate insights and statistics regarding the health of the used wholesale vehicle market in Canada.

Even though off lease used vehicle supply continues to grow, both in Canada and the U.S., February 2018 marks the highest index level for the month since tracking began in 2005.  The index at 102.5 is up +2.5% points from February of last year.  After a softer January where values fell -0.7% from December the index rose +0.2 points to land at the present 102.5 level.

The largest gainers year-over-year (YOY) are Compact Cars at +6.1% and Subcompact car at +6.0%, two segments that had previously been under significant downward price pressure yet have recently rebounded.  The biggest losses in YOY value were the Minivans at -5.3% and Full-Size Pickups at -2.2%.

The largest advances month-over-month are the Sports Cars at +1.5% and the Mid-Size Cars at +1.6%.  Surely the Sports Car value gain is a sign that spring is indeed around the corner.  Conversely, the largest retreats from a MOM point of view, were the Minivans at -1.7% and the Small Pick-up Trucks at -1.4%

The Canadian dollar has shown some weakness in February with a drop of $0.03 so that will make Canadian used vehicle exports look more attractive.

The Canadian Black Book Used Vehicle Retention Index is calculated using Canadian Black Book’s published Wholesale Average value on two- to six-year-old used vehicles, as a percent of original typically-equipped MSRP. Canadian Black Book’s Wholesale Average is a benchmark value for used vehicles selling in the wholesale auctions with the vehicle quality in average condition. The index is weighted based on used vehicle sales volume and adjusted for seasonality, vehicle age, mileage, condition, and inflation (MSRP).

Aggregated from daily vehicle value updates, and captured throughout thousands of wholesale vehicle transactions across the country, the Canadian Black Book Used Vehicle Retention Index represents data across all regions of Canada. The Index is based on a comprehensive list of vehicles included in the Canadian Black Book wholesale database, and includes no bias toward any brand, data source or region, ensuring an accurate report of the used vehicle market.

The Index is posted monthly on http://blog.canadianblackbook.com/ and distributed to automotive media for wider industry consumption.

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CLICK HERE TO DOWNLOAD THE FEBRUARY 2018 CANADIAN BLACK BOOK USED VEHICLE RETENTION INDEX (PDF)

For interview requests or more information, please contact:
Conrad Galambos, 905-979-7039, cgalambos@canadianblackbook.com

The Value – Issue #3: Brian Murphy to Present at Auto Remarketing Canada Conference

Welcome to The Canadian Black Book – The Value. Our goal is to provide our clients and partners with news, event updates, new initiatives and opinions from Canada’s trusted source for vehicle values and automotive insights. In this edition we cover:

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Don’t miss Canadian Black Book’s, VP Research & Editorial, Brian Murphy presenting at the 2018 Auto Remarketing Canada Conference.

Brian presents at 10:00AM Mar 27&28,  and will break down the Canadian used vehicle into 10 elements that “really matter” when trying to understand the current state of the used car market in Canada.

Auto Remarketing Conference Canada will be held at the Westin Harbour Castle, in Toronto, Ontario, on Tuesday March 27th and Wednesday March 28th.

See you there!

The Value – Issue #3: New Research Points Toward a Softening of Canadian Auto Sales

Welcome to Canadian Black Book’s – The Value. Our goal is to provide our clients and partners with news, event updates, new initiatives and opinions from Canada’s trusted source for vehicle values and automotive insights. In this edition we cover:

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Consumers are open to new ways of shopping for and buying vehicles

Research recently completed shows that 51 per cent of Canadian automotive consumers are likely to purchase a new vehicle over the next 24 months. Although this number is still strong, those surveyed last year were eleven per cent more likely to buy soon, a number highlighted by a record year for Canadian automotive sales. Perhaps this year’s numbers suggest that recent forecasts of diminishing auto sales are looming.

“Quite frankly, after such a dramatic ascent in sales over the past couple of years, this makes sense. It would be hard for us to continue breaking sales records throughout 2018 and beyond,” says Brad Rome, President, Canadian Black Book.
For the third year now, vehicle values specialists, Canadian Black Book, has designed a poll conducted nationally by Ipsos to gauge Canadian car buying habits, knowledge and trends. This year’s edition surveyed 1255 Canadians from coast to coast.

The poll implies that the younger a consumer is, the more likely they are to buy in this timeframe, with respondents aged 18-34 the most likely at 65 per cent, those 35-54 at 57 per cent and those 55 years or older are least likely at 34 per cent. Male respondents show more eagerness to buy in two years at 58 per cent versus females at 44 per cent.

(Click Here for High-Res version of the infographic)

Interestingly, over a quarter (27 per cent) of Canadians are likely to purchase a vehicle fully online, without stepping foot into a dealership. This is an area most OEMs and dealers are looking closely at, for good reason. Age and sex sway these results, where 36 per cent of those aged 18-34 would take buying fully online while only 11 per cent of those over 55 would do so. Males are much more likely at 32 per cent versus females at 21 per cent. “We are not surprised to see that millennials are over three times more likely to purchase a vehicle online compared to boomers,” says Brian Murphy, VP Research and Editorial, Canadian Black Book. “This would be a major shift in automotive retailing, and one that is similar to how millennials research, shop for and purchase so many of their goods today,” he adds.

57 per cent nationally intend to purchase a new vehicle instead of a used one. This statistic is also influenced by age, where older buyers are more likely to buy new. Those aged 18-34 intend to buy new at 46 per cent, while 59 per cent of respondents 35-54 and 64 per cent of those 55 plus, will likely buy a new vehicle.

Dealer websites are the first tool that consumers use when researching a vehicle, say 23 per cent of the respondents. The next method for initial research which was selected by 22 per cent of those surveyed is to ask friends and family.

After initial research is done, where there is more uncertainty, is in the understanding and research of trade-in values. Nationally, only half (49 per cent) of Canadian auto consumers had a good idea of their vehicle value heading into the dealership. However, 21 per cent had no idea of the value and a further 6 per cent had such poor trade-in experience that they switched dealers all together. 36 per cent feel that they got less than they expected on a trade-in.

“Consumers often struggle with knowing an accurate trade-in value for their vehicle, which can turn the car buying experience into a negative one for both the buyer and the seller,” says Murphy. “It’s crucial that consumers use tools to get accurate trade-in values. While they’re at it, they should research the future value for the ride they intend to purchase, so they properly understand its depreciation curve and when it will be in negative equity related to their loan.”

For this, 65 per cent of respondents chose online trade-in calculators (up 7 points from last year) as the number one method to research vehicle values. Across Canada seven in ten of those surveyed know that Canadian Black book allows the public free access to its online vehicle valuation tools. This survey showed that 33 per cent of respondents have actually used the tools on CanadianBlackBook.com, up 9 points from this time last year.

“Of extreme concern, is the seemingly perpetual misunderstanding about the single largest cost of vehicle ownership – depreciation,” says Murphy. Only one per cent correctly identified depreciation as the largest expense tied to owning a vehicle (down from two per cent last year). “Purchasing a vehicle that has poor value retention can cost you thousands of dollars, when you go to sell, trade-in or negotiate a loan,” he adds. Zero females and zero respondents from the 35-54 age group answered this question correctly.

Up from last year at 53 per cent, now 61 per cent of Canadians can properly define what negative equity is (when a vehicle is worth less than what is owed on a loan). This issue is currently growing along with the trend towards longer term auto loans. A resounding 97 per cent of respondents feel auto retailers should make customers fully aware of various loan payment options and schedules, so they are exactly aware of positive versus negative equity.

In terms of vehicle types, if gas were to rise $0.25 today, 46 per cent would consider any alternative energy vehicle, with hybrids being the most popular choice at 33 per cent. Males are more likely to consider an alternative energy vehicle at 52 per cent compared to females at a considerably lower 39 per cent.

Given a number of economic factors and the growth of vehicle sharing culture, Millennials are most likely to reduce the amount of vehicles in their household fleet in the next two years, at 32 per cent versus only 14 per cent of those over 55 years of age. However, in ten years 41 per cent of both the 18-34 and 55+ groups are likely to reduce the amount of vehicles they own.

About the Poll:
These are some of the findings of an Ipsos poll conducted between December 27, 2017 and Jan 2, 2018, on behalf of Canadian Black Book. For this survey, a sample of 1,061 Canadians (who own or lease a car/truck or who are looking to purchase in the next two years) from Ipsos’ online panel were interviewed online. Weighting was then employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/ – 3.4 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

 

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For more information or interview requests, please contact:
Conrad Galambos
Media Relations
Canadian Black Book
905-979-7039
cgalambos@canadianblackbook.com

The Value – Issue #2: 2018 Best Retained Value Awards Reveal Record Gains Across the Board

Welcome to the second edition of The Canadian Black Book – The Value. Our goal is to provide our clients and partners with news, event updates, new initiatives and opinions from Canada’s trusted source for vehicle values and automotive insights. In this edition we cover:

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2018 Best Retained Value Awards Reveal Record Gains Across the Board

Some More Good News After Another Year of Record New Car Sales

The 2018 edition of the Canadian Black Book Best Retained Value Awards, were highlighted by a record for overall industry average retained value of four year old vehicles in Canada. At 53 per cent, this surpasses the previous record of 51 per cent, set just last year. This is a significant increase given the number of categories and 282 total vehicles measured.

This year marks the eleventh annual presentation of these prestigious auto industry honours. The 2018 Canadian Black Book Best Retained Value Awards are awarded in 20 vehicle categories and for the second year, three ‘Overall Brand Awards’.

The record year for retained values is largely influenced by a few strong segments and individual vehicles.  The 2014 Jeep Wrangler has smashed the all-time retained value record, by holding 91 per cent of its original MSRP.  The Jeep Wrangler has now won in eight consecutive years. The ‘Small Pick-up’ category, as a whole, retained an impressive 73 per cent of its value.  The next strongest categories are the ‘Full-Sized Luxury Crossover/SUV’ and ‘Full-Sized Pick-up’ both retaining 61 per cent of original MSRP.

“What a great year for retained values,” says Brad Rome, President, Canadian Black Book.  “That said, the feeling is that we are getting close to the turning point where values are going to begin to retreat.  Market conditions, most notably the increase in supply in the U.S. and Canada is expected to put downward pressure on prices moving forward,” he says.

Other notable high performing winners this year, helping to support the overall record average  are: the first time winner Chevrolet Corvette in ‘Premium Sports Car’ retaining an impressive 88 per cent of its value; the Toyota FJ Cruiser in ‘Mid-sized Crossover/SUV’, the previous all-time retained value record holder from last year (at 83 per cent), winning for seven of the last eight years, and holding 86 per cent of its value from 2014; and the Toyota Tacoma, in the ‘Small Pick-up’ space has won for an unprecedented nine consecutive years and held 81 per cent of its value after four years, just one point down from last year.

“If you are the owner of one of these award winners and hold a loan or in some cases even a lease for the vehicle, you could be in a better position when it comes time to get into a new vehicle,” says Brian Murphy, VP Research and Editorial, at Canadian Black Book.  “High depreciation, the single most expensive cost of owning a vehicle, can be a back breaker, especially if you are in a long-term

loan, holding many consumers in negative equity where their vehicle is worth less than the outstanding amount due on the loan for almost the entire term of the loan,” he adds.

For example, after four years of owning a vehicle that only retained 30 per cent of its value, versus one that retained 50 per cent, the loss would be $7,000 more in depreciation on a typical $35,000 car. The weaker value retention will affect what the current car is worth at the end of the loan, and if any losses are rolled into the next loan, it will result in larger payments for the new car, due to a low trade-in value.

“Car buyers need to understand depreciation and the issue of negative equity and do their research on vehicle values before they head into the dealership.” Murphy says.

The category ‘Sub-Compact Car’ fares the poorest for retained value, holding a category average of just 40 per cent, with some individual cars dipping into the twenties.   Other categories that currently struggle with retained value, are ‘Luxury Car’ (43 per cent), ‘Compact Commercial Van’ (45 per cent), ‘Mid-sized Car’ (46 per cent), ‘Full-sized Car’ and ‘Compact Car’ (both at 47 per cent). Overall trucks and Crossover/SUVs seem to perform best which reflect strong market demands for these types of vehicles in the used market.

Certain brands also excel in terms of retained value. For the second year, Canadian Black Book is awarding ‘Overall Brand Awards’ that recognize retained value across a brands’ full product line up. The winners are for ‘Car’ – Toyota (56 per cent); ‘Truck/Crossover/SUV’ – Toyota (71 per cent); ‘Luxury’ – Porsche (66 per cent). Toyota again dominated the awards with eight category wins, two brand wins and 14 total mentions (top three in a category).

Other brands had impressive showings for 2018. FCA posted its best ever showing with seven mentions and four category wins in ‘Compact Crossover/SUV’ with Jeep Wrangler; in ‘Compact Commercial Van’ with RAM Cargo Van; in ‘Full-sized Van’ with RAM ProMaster, and the Canadian built Dodge Challenger in ‘Sports Car’ for the seventh year straight.

GM also shows its best year yet with six mentions and two category wins in ‘Premium Sports Car’ – Chevrolet Corvette; and in ‘Full-size Crossover/SUV’ – Chevrolet Tahoe.

Mercedes-Benz topped the luxury category with seven total mentions and three category wins in ‘Entry Luxury Car’ – Mercedes-Benz CLA-Class; in ‘Full-size Luxury Crossover/SUV’ – Mercedes-Benz G-Class; and in ‘Compact Luxury Crossover/SUV’ – Mercedes-Benz GLK-Class.

“Congratulations to all the winners of the 2018 Canadian Black Book Best Retained Value Awards.  You all deserve it for producing vehicles that Canadians want.” said Brad Rome.

2018 Canadian Black Book Best Retained Value Award Results:

Overall Brand Awards
Car Toyota
Truck/Crossover/SUV Toyota
Luxury Porsche

 

MODEL 1st 2nd 3rd
Sub-compact Car Toyota Prius  c Toyota Yaris Kia Soul
Compact Car Toyota Prius v Toyota Matrix Honda Civic
Mid-size Car Toyota Camry Subaru Outback Honda Accord
Full-size Car Toyota Avalon Dodge Charger Chrysler 300
Entry Luxury Car Mercedes-Benz CLA-Class Volvo XC70 Lexus ES350
Luxury Car Lexus GS Series Audi A7 Mercedes-Benz E-Class
Premium Luxury Car Porsche Panamera Mercedes-Benz S-Class Mercedes-Benz CLS-Class
Premium Sports Car Chevrolet Corvette Porsche Boxster Porsche Cayman
Sports Car Dodge Challenger BMW 2 Series Mazda MX-5
Small Pickup Toyota Tacoma Honda Ridgeline Nissan Frontier
Full-size Pickup Toyota Tundra GMC Sierra 1500 GMC Sierra HD
Minivan Toyota Sienna Honda Odyssey Kia Sedona
Full-size Van RAM ProMaster Mercedes-Benz Sprinter Nissan NV Vans
Compact Commercial Van RAM Van Ford Transit Connect
Compact Crossover/SUV Jeep Wrangler Nissan Xterra Toyota RAV4
Mid-size Crossover/SUV Toyota FJ Cruiser Toyota 4Runner Toyota Highlander
Full-size Crossover/SUV Chevrolet Tahoe Toyota Sequoia Chevrolet Suburban 1500
Compact Luxury Crossover/SUV Mercedes-Benz GLK-Class Audi Q5 Range Rover Evoque
Mid-size Luxury Crossover/SUV Porsche Cayenne Lexus GX460 Lexus RX350
Full-size Luxury Crossover/SUV Mercedes-Benz G-Class Land Rover Range Rover Sport Land Rover Range Rover

The Value Issue #2: CBB Connect Update

Welcome to the second edition of The Canadian Black Book – The Value. Our goal is to provide our clients and partners with news, event updates, new initiatives and opinions from Canada’s trusted source for vehicle values and automotive insights. In this edition we cover:

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CBB Connect Update

To our CBB Connect mobile users: Canadian Black book would like to apologize for issues that our latest updates may have caused to some users. We launched a necessary mobile app update, on February 5, that resulted in some users having difficulty logging in. Since then the log in issues have been resolved, yet the update will result in the loss of historic lookups, favorites and notes.

Sorry for the inconvenience.

The new CBB Connect mobile app update, is the first stage in a series of improvements and new features that will be introduced shortly.

This update includes:

-New improved VIN Scanner
-Faster & More reliable

-JD Power PIN data integration

-Improved presentation of CBB values for easier legibility

-App available on phone and tablet

Phase 2 updates will include:

-Modern responsive design with easier to use features

-Online version available, will work on all screen sizes

-Data Sync between App and Desktop
-Perform a look up on either your mobile or desktop and it will appear in your history on both your desktop and mobile

-Live Retail Listing Market View & Retail Price Analysis
-Know the estimated retail price of your vehicle and how it compares to other retail prices in your marketplace

-Vehicle Appraisal Tool
-History of Appraisals (available on both desktop and app)

-Customer Appraisal Presentation

-Residual Values

-Introduction of Reporting Features

These new features and improved functionality will be rolled out over the next few months, with the goal of improving your experience with our products and empowering you with useful features.  Canadian Black Book is committed to providing its customers with leading tools and solutions to help drive efficiencies into your business.

We would appreciate your feedback.  Please send any questions, comments or concerns to: creiken@canadianblackbook.com

 

The Value Issue #2: January 2018 Used Vehicle Retention Index

Welcome to the second edition of The Canadian Black Book – The Value. Our goal is to provide our clients and partners with news, event updates, new initiatives and opinions from Canada’s trusted source for vehicle values and automotive insights. In this edition we cover:

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Canadian Black Book Used Vehicle Retention Index For January 2018

Markham, ON, January 9, 2018 – Canadian Black Book releases its third Used Vehicle Retention Index for Canada, covering January, 2018.

This Index serves to offer unbiased and accurate insights and statistics regarding the health of the used wholesale vehicle market in Canada.

With the first month of 2018 behind us, this month’s Canadian Black Book Used Vehicle Retention Index reveals some interesting and notable value trends.  The entire industry shows a gain of 3% from January 2017, which is not surprising given the overall strong values over the course of 2017.  What is more noteworthy is the 0.7% decline for the month of January as compared to values in December 2017.  We have not seen a January decline in the index since 2009 when values fell by 1.2%.

Looking around the segments the biggest decreases of note in the retention index were found in the Full-Size Car (-2.2%), Compact Crossover/SUV (-1.5%) and Sub-Compact Car (-1.6%).

The largest gains were seen in Full-Size Luxury CUV/SUV (+0.3%), Full-Size Van (+0.5%) and Premium Luxury Car (0.4%).

The dollar closed the month 1.5 cents higher than it started, which does

negatively impact the attractiveness of Canadian used vehicles for export.  Canadian Black Book will continue as always to keep our eyes on the dollar, which has direct impact on used values.

The Canadian Black Book Used Vehicle Retention Index is calculated using Canadian Black Book’s published Wholesale Average value on two- to six-year-old used vehicles, as a percent of original typically-equipped MSRP. Canadian Black Book’s Wholesale Average is a benchmark value for used vehicles selling in the wholesale auctions with the vehicle quality in average condition. The index is weighted based on used vehicle sales volume and adjusted for seasonality, vehicle age, mileage, condition, and inflation (MSRP).

Aggregated from daily vehicle value updates, and captured throughout thousands of wholesale vehicle transactions across

the country, the Canadian Black Book Used Vehicle Retention Index represents data across all regions of Canada. The Index is based on a comprehensive list of vehicles included in the Canadian Black Book wholesale database, and includes no bias toward any brand, data source or region, ensuring an accurate report of the used vehicle market.

The Index is posted monthly on http://blog.canadianblackbook.com/ and distributed to automotive media for wider industry consumption.

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CLICK HERE TO DOWNLOAD THE JANUARY 2018 CANADIAN BLACK BOOK USED VEHICLE RETENTION INDEX (PDF)

For interview requests or more information, please contact:
Conrad Galambos, 905-979-7039, cgalambos@canadianblackbook.com

The Value Issue #2: High Profile Auto Industry Golf Day Taking on New Meaning for 2018

Welcome to the second edition of The Canadian Black Book – The Value. Our goal is to provide our clients and partners with news, event updates, new initiatives and opinions from Canada’s trusted source for vehicle values and automotive insights. In this edition we cover:

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High Profile Auto Industry Golf Day Taking on New Meaning for 2018

Canadian Black Book Golf Tournament to Honour Former CEO Kathy Ward

February 6, 2018, Markham, ON – The 21st annual Canadian auto industry golf tournament hosted by Canadian Black Book, is being renamed in honour of the company’s former CEO, Kathy Ward. Moving forward, the tournament will be called – The Canadian Black Book Kathy Ward Memorial Golf Tournament.

Kathy lost her battle with cancer in December of 2017, a loss that struck Canada’s auto sector as a whole.

Kathy was a mainstay at Canadian Black Book for the better part of 30 years. Her list of accomplishments runs long, but perhaps her favourite was the inception of the company’s annual golf tournament, in 1997, in support of Tim Horton Children’s Foundation.

“Kathy loved to golf and mingle. This was her favourite day of the year. She was so happy to support the Tim Horton Children’s Foundation each year,” says Harm DeJonge, Kathy’s husband, “William and I are touched by this gesture, one that I know Kathy would love, to have Canadian Black Book honour her in such a meaningful and appropriate way,” he adds.

After hearing about the idea from Brad Rome, President at Canadian Black Book, DeJonge made an incredible offer. As recognition of the appreciation from him and his family, DeJonge has committed to match any donations made in Kathy’s memory, until the end of this year’s tournament, up to $50,000.

“Harm and the family have been through so much lately.  For him to step up like this just adds to Kathy’s legacy, I can feel her smiling and being proud.,” says Brad Rome. “Making the cheque presentation this year along with Harm to the Foundation will be a proud moment, knowing the amount of money will surely make a meaningful difference to a lot of kids, and that would make Kathy happy,” adds Rome.

For 2018, the Canadian Black Book Kathy Ward Memorial Golf Tournament will be held on September 10th, at one of Canada’s premier private golf courses, Magna Golf Club in Aurora.

Registration is limited and is expected to fill up quickly.  For sponsorship and foursome enquiries please contact Dave Cook (dave@instylepromos.com). To make a donation to Tim Horton Children’s Foundation in memory of Kathy Ward, go to https://www.timhortons.com/ca/en/childrens-foundation/index.php

The Value Issue #2: New Tool Launches to Help Vehicle Owners After a Write-Off

Welcome to the second edition of The Canadian Black Book – The Value. Our goal is to provide our clients and partners with news, event updates, new initiatives and opinions from Canada’s trusted source for vehicle values and automotive insights. In this edition we cover:

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New Tool Launches to Help Vehicle Owners After a Write-Off
Canadian Black Book Teams with Total Loss Report to Help Consumers Uncertain About Insurance Payouts

In Canada, 350,000 vehicles per year are written-off as total losses, by insurance companies after an accident. A total loss situation can be a very emotional and frustrating experience for a vehicle owner, as many have misinformed expectations of their vehicle’s value, largely due to a lack of understanding of depreciation. The problem is compounded with a significant number of claimants who find payouts not sufficient to cover what they owe on the vehicle.

Partnering with Total Loss Report, Canadian Black Book has introduced an industry first tool on their website to provide vehicle owners with the information to help them deal with this stressful situation. The Total Loss Report generates an unbiased third-party report (as a PDF download) that combines accurate value ranges with a cross section of comparable listings taken from the Canadian Black Book website.

“Now for the first time, those experiencing a total loss situation can enter an insurance negotiation equipped with a report containing data about the vehicle in question, from a trusted third-party,” says Brad Rome, President, Canadian Black Book. “The Total Loss Report immediately lets owners know where they stand and will make for smoother discussions with insurance providers,” he adds.

The data is supplied from Canadian Black Book, Canada’s premier provider of vehicle values to banks, insurance companies and car dealers for over 55 years and to consumers through Candaianblackbook.com since 2010.

“Seven years ago, we launched our consumer website and free online vehicle valuation tools changing the way Canadians shopped for vehicles, providing them with data they never had access to” says Rome. “Now we are once again putting our data and technology in the public domain to help both consumers and insurance companies ‘Go In Smart’ when discussing a total loss.”

Although the goal is to better inform the consumer, insurance companies stand to benefit from the launch of this tool as well. In short, the Total Loss Report simplifies a difficult situation. Expectations on both sides are better managed, leading to a more informed negotiation and a higher likelihood of the insurance company retaining the client. More often than not, the insurer loses the customer after a total loss claim, as high expectations may not have been met.

The Total Loss Report launched on canadianblackbook.com in December 2017. If early numbers are any indication, this is a product that is in high demand by Canadian consumers.

The service can be accessed by consumers in one of two ways. It can be provided for free, if the consumer is willing to provide some basic contact details that will be shared with dealers in their area, as they will most likely be in the market for a new vehicle, taking a step out of the car shopping process. If the consumer would rather not provide their contact details, the report can be purchased.

Remembering Kathy Ward – An Industry Icon: Celebration of Life Details

Welcome to the first edition of The Canadian Black Book – The Value. Our goal is to provide our clients and partners with news, event updates, new initiatives and opinions from Canada’s trusted source for vehicle values and automotive insights. In this edition we cover:

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Kathy Ward, November 16, 1957 – December 24, 2017

At the age of 60, surrounded by family and close friends on Christmas Eve, past President and CEO at Canadian Black Book, Kathy Ward passed away.  After a courageous fight, she eventually lost a multiyear battle against cancer.

Kathy, a Canadian auto industry icon, retired from Canadian Black Book in September of 2016.  She was a mainstay in the company for 36 years and President and CEO for the last ten years of her storied and pioneering career.

Please find below details for the Celebration of Life for our dear friend Kathy Ward.

Date: Tuesday January 23, 2018

Location: Universal EventSpace, 6250 Hwy 7, Vaughan, ON, L4H 4G3

Time: 2:00pm – 6:00pm  (A Tribute will begin at 3:00pm)

As the family prepares for Kathy’s celebration of life, they have asked that if anyone has any pictures they wish to share please send them to info@tada.ca along with any note you wish to extend and they will be passed along to the family.

As an expression of sympathy contributions may be made to Kathy’s favourite charity that she has supported for years…Tim Horton Children’s Foundation. Please click here to donate in memory of Kathy Ward.

Sincerely,

Brad Rome

THE VALUE – Issue #1: The effect of Hurricanes on Canadian used vehicle values

Welcome to the first edition of The Canadian Black Book – The Value. Our goal is to provide our clients and partners with news, event updates, new initiatives and opinions from Canada’s trusted source for vehicle values and automotive insights. In this edition we cover:

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Rising Waters and Rising Dollars

By Brian Murphy, VP Research & Editorial, Canadian Black Book

I’ve recently written about the rise of interest rates, and the Canadian dollar’s recent impressive climb above the eighty cent plateau. As I write this article our dollar has backtracked to just below that mark. With more rumored interest rate hikes on the horizon, I expect it will strengthen once again.

As a reminder, with rising interest rates and a stronger dollar, we at Canadian Black Book expect that will apply significant downward pressure on wholesale, and ultimately retail used vehicle prices domestically. This is primarily due to the amount of exporting of Canadian vehicles made possible by a lower Canadian dollar, and lower Canadian prices over the last few years. A higher value Canuck-buck means that Canadian used cars are less attractive to U.S. exporters. The result will be lower demand and lower prices as those exports slow.

All of that seems relatively straightforward, but then 2017’s hurricane season happened. Hurricanes Harvey and Irma were both incredibly destructive monsters of nature. Irma was the strongest Atlantic storm, outside of the Gulf of Mexico or Caribbean Sea, on record. Harvey produced over 1.6 meters of rain in Texas, the highest-ever rainfall total for any tropical cyclone in the U.S. The loss of life and damage to property was truly horrific and the clean-up will take many, many years.

When massive storms like these make landfall, one of the many consequences include the destruction of vehicles of all types on a large scale. Damage is typically either through flooding or damage caused by high winds and flying debris. Insurance companies and owners of vehicles are still in the process of working through claims and efforts to repair or replace vehicles. At this point, it is very difficult to get a clear picture on how many vehicles were actually destroyed.

If Hurricane Harvey wanted to destroy cars he really could not have picked a better target than Houston, Texas. Houston is sprawling metropolitan area with a high rate of vehicle ownership. Harris County (where Houston is located) alone has 3.6 million vehicles registered. To put that in perspective that is one tenth of the number of cars registered in all of Canada. It is very close to the number registered in all of B.C. The average household in Houston had just shy of 2 cars.

Initial estimates of how many vehicles were destroyed still remain imprecise. Anything from 500,000 to 1,000,000 cars have been widely reported as destroyed,from Harvey alone. Given that there wasn’t an evacuation order issued many cars just sat in driveways during the peak of the storm. If vehicles were parked in a particularly low lying areas, chances are that is the end of the road for most of those vehicles. Modern cars with all of their various electronics and computer driven components typically don’t mix well with flood waters.

Only a mere 15 days after Harvey, Hurricane Irma set her sights on Florida. The story was similar there, where Irma is estimated to have destroyed 200,000-400,000 vehicles.

It will take many months for insurance adjusters just to see each vehicle and determine if it can be repaired or if it will be a total loss. Given the amount of flooding and the height of the water there likely won’t be many survivors. The insurance damage from Irma alone, according to JPMorgan, is in the range of $20 to $40 billion dollars.

So what does this have to do with the Canadian auto industry? As it turns out, quite a lot. It’s important to note, that previous to hurricane season prices in the U.S. market were falling, which makes it less attractive to come to Canada to snap up bargains here. My colleagues at Black Book in the U.S. have observed that prices have been dropping consistently, month over month, an average of almost 5% this year so far. Much of this has to do with a boom in U.S. supply. Around half a million more vehicles are expected off lease this year in the U.S. versus last year, and a trend expected to continue next year as well.

If not for the hurricanes, a downward price trend here in Canada was a sure thing. With easily over a million cars likely to be written off, Canada becomes a convenient source of supply to fill all those replacement vehicles needed down south. This huge spike in demand, in a very short period of time, means that our domestic prices are expected to be temporarily propped up. We expect this to be a short-lived phenomenon, and after a few months’ time is expected to wear off. The hurricanes, in a rather brutal fashion, have carved out some temporary price protection for Canadian used vehicles, but it won’t last long. For those of you in the business of buying cars, be vigilant for anything that has been registered in Florida or Texas, and buyer beware!