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:
- Mr. Sharing Economy, in the Fast Lane!
- July 2018 Used Vehicle Retention Index
- TalkAUTO: A Drive Down Memory Lane
- The New CBB Connect
The Canadian Black Book Used Vehicle Retention Index is mirroring the hot summer weather much of Canada has had recently! The July industry index of 103.3 is only 0.01 off the record high mark from April of this year. This is an excellent indicator of how strong values continue to be, despite growing used car supply in Canada and the U.S.. The July index is up 0.3 points from last month and a strong 2.4% from the same time last year.
Surveying the different segments, we see that compact car has posted a significant lift from July of last year with a 7.5% gain. Compact car prices had previously fallen in 2016, so the current increase is partially a price correction, and we expect renewed interest in smaller cars given higher gasoline prices. Sub-compact cars are following a similar course with gains of 11.1% since last year and 5.1% from last month. Smaller cars are one of the most active segments in the market at the moment and will be one to watch in the coming months.
Full size pick-up trucks are down 3.1% from last year, but up 1.1% from last month. Small pick-ups are also down almost 1% this month, and down by 1% from the same time last year. We expect more headwinds for truck pricing in the coming months as more supply comes back from leases ending, both in the USA and Canada.
Mid-Size Luxury CUV/SUV are also slowing with drops of 0.8% this month and 2.2% from last year. Minivans are only off 0.3% from last month but theare in a pretty significant slide of 6.7% versus 2017.
So far the index does not show any response to suggestions of coming import tariffs from the U.S. administration, and that is another positive observation for a sunny month for the industry.
To download the July 2018 Index Click Here.