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:
- 2018 Canadian Black Book Best Retained Value Awards
- CBB Connect Issue – We Apologize for the Inconvenience
- Our Golf Tournament gets Renamed in Honour of Kathy Ward
- Canadian Black Book Launches the Total Loss Report
- January’s Used Vehicle Retention Index
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|
|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|