For Immediate Release:
Canadian Black Book Unveils Its First Used Vehicle Retention Index for Canada
Monthly Index To Provide Canadian Auto Industry with Neutral Commentary on Used Vehicle Pricing Trends
Markham, ON, December 8, 2017 – Canadian Black Book announces today the release of its first Used Vehicle Retention Index for Canada.
The Index will serve to offer unbiased and accurate insights and statistics regarding the health of the used wholesale vehicle market in Canada. This inaugural edition covers the month of November, 2017.
“We’ve used this type of index data internally for many years, and are now packaging it up to provide Canada’s auto industry a free monthly resource to help monitor the ongoing vital signs of used vehicle pricing domestically,” says Brad Rome, President, Canadian Black Book. “This information is impartial to any brand, and can help guide decision makers with accurate figures regarding the strength or weakness of used vehicle prices,” he adds.
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 will provide automotive industry professionals and watchers with insight regarding trends with comparisons year-over-year and month-over-month. From a more macroeconomic perspective it will illustrate pricing performance since the index commenced with data from 2005.
“We are always being asked about the overall state of used vehicle value retention, which we are happy to answer. This new regularly published index will just make it easier and provide a more visual means to get those answers and see the direction of prices in Canada,” says Brian Murphy, Vice President Research and Editorial, Canadian B lack Book.
This first Index illustrates the effects of the economic pain of 2008-2009 in the index. This becomes even more visible after examining full size trucks during that time as prices fell more than 15% nationally. Late 2009 saw a false recovery of prices, followed by falling prices again, however since the middle of 2010 there has been a remarkable and steady growth in prices overall. Today the Index is currently at its highest level (102.4) since it was first calculated using 2005 data.
The strongest segments are full size luxury crossovers/SUVs, midsize crossovers and small pickup trucks. The segments with weakest performance are the near luxury cars and subcompact cars, both perform considerably below the market average. Both however have strengthened in recent months. A more detailed index at the more granular segment level will be made available for Canadian Black Book clients upon request.
The Index will be posted monthly on CanadianBlackBook.com and distributed to automotive media for wider industry consumption.
About Canadian Black Book:
For more than 55 years, Canadian Black Book has been the trusted and unbiased Canadian automotive industry source for vehicle values. Canadian Black Book tools and information are considered ‘The Authority’ for vehicle values not only by car dealers and manufacturers, but also the leasing, finance, insurance and wholesale sectors. For the past seven years, consumers have also benefited from the same expert insight. In 2010, Canadian Black Book introduced their consumer website that includes free online tools for calculating a vehicle’s Trade-in Value, Future Value and the Average Asking Price. The popularity of these tools has taken off with the website seeing an average of over 170,000 value look-ups monthly. Canadianblackbook.com offers unique vehicle valuation tools and is a distinctly Canadian resource for car buyers and sellers.
Click to view the first ever Canadian Black Book Retention Index – 2017_11.
For more information or interview requests, please contact:
Canadian Black Book