HAPPY NEW YEAR! 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:
- December 2018 Used Vehicle Retention Index
- It’s a New Year: How Does Canadian Black Book See 2019?- By Brian Murphy
- Canadians Love Online Shopping. But for Cars…Really? – By Cole Reiken
- The Last Frosty Detroit Auto Show
December finished on a high note as the CBB retained value index for 2-6 year old vehicles set a record high mark of 105.0, the highest level since the index began with 2005 calendar year. This record high level is a testament to the strong demand for used cars in Canada, both for the economically strong Canadian market and for export to other markets, namely the lucrative U.S. market. With used car supply growing on both sides of the border there is expectation that the index will soften throughout the year. However, with a fairly weak Canadian dollar the timing of that remains uncertain as Canadian vehicles remain an attractive bargain for buyers in the U.S.
In a market that is increasingly SUV dominant, it was the cars that showed some of the greatest gains in December 2018 compared to the same month last year. Sub-Compact cars led the way increasing 6.2 points followed by midsize cars at 4.7 points and compact cars showing a gain of 3.7.
Compared to November 2018 results, the gains in December were less significant as the index in total only rose by 0.4 points. Month over month it was full size cars leading the charge at 1.3 and midsize cars at 0.9 percent. Again, this shows some interesting strength from the car segment in a month were SUV products were decidedly flat.
In one of the most significant segments, full size trucks remained remarkably stable in 2018. There was some weakness showing back in Q1 when the Canadian dollar was hovering just over the $0.80 mark, but since that time truck values have strengthened as a weaker dollar prevailed for the remainder of the year.