LA VALEUR – Numéro 8: Indice de rétention des valeurs des véhicules d’occasion – juillet 2018

Bienvenue au Canadian Black Book – La valeur. Notre objectif est de fournir à nos clients et à nos partenaires des nouvelles, une mise à jour des événements, de nouvelles initiatives et l’opinion de la source de confiance du Canada pour les valeurs des véhicules et les perspectives automobiles. Vous trouverez ce qui suit dans ce numéro :

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L’indice canadien des valeurs retenues des véhicules d’occasion Canadian Black Book témoigne de la canicule estivale que certaines régions du pays ont connue récemment! À 103,3, l’indice de l’industrie de juillet n’est que de 0,01 en dessous du sommet record d’avril de cette année. C’est là un excellent indicateur de la robustesse des valeurs, malgré la croissance de l’offre de voitures d’occasion au Canada et sur le marché américain. L’indice de juillet est en hausse de 0,3 point par rapport au mois dernier, et de 2,4 % par rapport à la même période l’an dernier.

En examinant les différents segments, on constate que la voiture compacte a enregistré une hausse significative par rapport à juillet de l’an dernier avec un gain de 7,5 %. Le prix des voitures compactes avait chuté en 2016, ce qui s’explique en partie par une correction des prix, et nous nous attendons à un regain d’intérêt pour les petites voitures, compte tenu du prix plus élevé de l’essence. Les sous-compactes suivent un parcours similaire avec des gains de 11,1 % depuis l’an dernier et de 5,1 % par rapport au mois dernier. Les petites voitures sont l’un des segments les plus actifs du marché à l’heure actuelle et seront à surveiller dans les mois à venir.

Les camionnettes pleine grandeur sont en baisse de 3,1 % par rapport à l’an dernier, mais en hausse de 1,1 % par rapport au mois dernier. Les camionnettes sont également en baisse de près de 1 % ce mois-ci et de 1 % par rapport à la même période l’an dernier. Nous nous attendons à d’autres vents contraires en ce qui concerne les prix des camions au cours des prochains mois, au fur et à mesure que l’offre augmente à la fin des baux de location, tant aux États-Unis qu’au Canada.

Les VUM et VUS de luxe intermédiaires ralentissent aussi avec des baisses de 0,8 % ce mois-ci et de 2,2 % par rapport à l’an dernier. Les minifourgonnettes accusent un recul minime de 0,3 % par rapport au mois dernier, mais elles ont chuté de 6,7 % par rapport à l’an dernier.

Jusqu’à présent, l’indice ne reflète aucunement les suggestions de tarifs d’importation de l’administration américaine, et c’est une observation positive pour un mois ensoleillé pour l’industrie.

CLIQUEZ ICI POUR TÉLÉCHARGER L’INDICE DE RÉTENTION DES VALEURS DES VÉHICULES D’OCCASION CANADIAN BLACK BOOK DE JUILLET (PDF)

The Value – Issue #8: July 2018 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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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.

LA VALEUR – Numéro 7: Indice de rétention des valeurs des véhicules d’occasion – juin 2018

Bienvenue au Canadian Black Book – La valeur. Notre objectif est de fournir à nos clients et à nos partenaires des nouvelles, une mise à jour des événements, de nouvelles initiatives et l’opinion de la source de confiance du Canada pour les valeurs des véhicules et les perspectives automobiles. Vous trouverez ce qui suit dans ce numéro :

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L’index de la valeur retenue des véhicules d’occasion Canadian Black Book (CBB) a connu une légère baisse de 0,4 % en juin, la première baisse depuis janvier 2018. L’indice demeure à un niveau très élevé dans l’ensemble et reflète le fait que les valeurs retenues des véhicules d’occasion sont encore à certains des niveaux les plus élevés depuis le début du suivi en 2005. Comparé au mois de juin 2017, l’indice est toujours en avance de 3,9 pour cent.

En examinant plus en détail les segments, les voitures sous-compactes et compactes affichent une croissance marquée de 8 % et 7,4 % respectivement depuis la même période l’an dernier. Les sous-compactes sont en hausse de 0,6 % par rapport au mois dernier. La hausse du prix du carburant contribue certainement à renforcer ces deux segments.

Les véhicules multisegments compacts gagnent progressivement en valeur, rien de surprenant avec l’enthousiasme du marché canadien pour ce type de véhicule. Ce segment populaire est en hausse de 4,4 % par rapport à l’an dernier et de 0,5 % par rapport au mois dernier.

Les voitures intermédiaires affichent un gain surprenant de 7,4 % par rapport à juin l’an dernier, affichant l’une des plus fortes augmentations sur douze mois de tous les segments, mais toujours en baisse de 1,4 % par rapport au début de l’année.

Du côté des pertes, les camionnettes pleine grandeur sont en baisse de 2,2 % par rapport à l’an dernier et de 0,7 % seulement ce mois-ci. Les voitures de luxe sont en baisse de 1,5 % par rapport à la même période l’an dernier, tout comme les minifourgonnettes qui ont connu une baisse de 3,9 % depuis le début de l’année et de 1,3 % par rapport au mois dernier.

CLIQUEZ ICI POUR TÉLÉCHARGER L’INDICE DE RÉTENTION DES VALEURS DES VÉHICULES D’OCCASION CANADIAN BLACK BOOK DE JUIN (PDF)

The Value – Issue #7: Used Vehicle Operations Getting Technical. Let’s Talk Software. – By Cole Reiken

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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Software really is at the heart of most of the business operations at today’s dealership.  I’m not discounting the importance of good people, great thinking and hard work, but the fact remains that technology is integral in the selling of vehicles today.  Software is deployed to manage marketing of new and used, accounting, sales, inventory, HR, and I could continue down the long list of specific tactical elements where software helps dealers do business.

Cole Reiken, Vice President, Digital Strategy & Product Management, Canadian Black Book

The focus here will be on used vehicle operations and what I see as constituting best practices for the used business unit to concentrate on.  As you know, there is much to consider.

Off the top, it is critical for used car managers to understand which vehicles to purchase, pricing trends in the market and how much they should be paying for those vehicles.  The right vehicle valuation software is crucial to help provide this knowledge.

When selecting your valuation tool, it is important to know what type of data is provided.  For instance, auction reporting data provides insights on what used vehicles sold for at auction versus data sourced from retail listing prices from vehicles posted online.  Dealerships should hone in on tools that provide more comprehensive value and trend data that includes auction results, industry sales data and upstream OEM sales from across Canada.

Okay, now that we (hypothetically) have that knowledge in place, how and where are the best tech methods to source those vehicles?  Using the power of the internet to leverage online auctions and participating in simulcasts work best.  They help increase reach by covering a larger geographic distance, as opposed to attending actual auctions themselves.  On top of that, transporting vehicles is relatively inexpensive.  This can all be done at a desk in the dealership.  In doing so you may identify regional opportunities to find specific pricing on specific types of vehicles.  The best case scenario would be to couple this technique with your newly installed valuation tool to help recognize the best vehicles to purchase.

It’s also wise to pay close attention to vehicle appraisal tools employed in your used car department.  You want your appraisal tool to allow you to review the vehicle at auction or during the trade-in process.  The best versions of this software capture vital details about the vehicle’s current condition.  The most sophisticated will offer photo capture options, to record vehicle condition regarding its general state, any damage and to document features or equipment.

Now that you’ve sourced the right vehicles and purchased them, they begin to add up on the lot.  Deploying an inventory management system can help organize, monitor, and drive efficiencies.

Inventory management software goes further than your standard DMS which track the likes of your floor plans and interest costs.   Although a basic feature, tracking vehicle time on lot and turn times is vital reporting data for your operation.  Further to that, most systems will identify the units on the lot that sell fastest, helping you with some marketing and sales decisions.

Good inventory tools will generate templated used vehicle listings that can be syndicated to your website as well as the major listings websites, like Canadianblackbook.com.  Needless to say, this is a major time saver and can bring consistency to the marketing plan.

All of the above are considerations when tooling your used vehicle team with software, however, the most important piece of deploying (any form of) software or technology is the process or workflow.  Quite frankly, it can be a culture shock.  Determining the composition of a dealership’s workflow is the most important task when trying to optimize this system.  If your software solution does not fit or you have to adopt a new workflow to fit the system, then the full feature set and ROI, will certainly not be realized.

The key is training.  I’m not talking about training that shows you to ‘click here and…do that’.  No, proper team training that puts the focus not just on the clicks but ties that back to YOUR process.  Training ensures that all team members understand the functionality and how it can help them day-to-day.

After all, the growth of software within any dealership equates to a cultural shift that’s not always easy.  It’s a cultural shift that we need to embrace, but only if the solutions chosen actually fix existing problems or inefficiencies.  The right software in you used car operation can do both.

The Value – Issue #7: June 2018 Used Vehicle Index Commentary

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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The Canadian Black Book (CBB) Wholesale Used Vehicle Retention saw a small decline of 0.4 per cent for June, the first decline since January of this year.  The index remains at a very high level overall and reflects that vehicle retained values are still at some of the highest levels since the tracking began in 2005.  Compared to June of last year the index is still a strong 3.9 percent ahead.

Looking across the segments in greater detail, the Subcompact and Compact Cars have shown impressive growth of 8 per cent and 7.4 per cent respectively since the same time last year.  Subcompact cars are up 0.6 percent from last month alone.  No doubt some higher fuel prices are helping these two segments stay strong.

Compact crossovers continue to strengthen their values, not surprising the Canadian market’s love for this type of vehicle.  The popular segment is up by 4.4% from last year and 0.5% from last month alone.

Mid-size car shows a surprising gain of 7.4 per cent from June of last year, posting one of the biggest year over year increases of any segment, but still down 1.4 per cent from the beginning of the year.

On the negative side of the ledger, full size pickup trucks are down 2.2% from last year and down 0.7% just this month.  Luxury cars are down 1.5% from the same time last year, as are minivans which showed a decrease of 3.9% year to date and 1.3% from last month.

To download the Index for June 2018 CLICK HERE

The Value – Issue #6: May 2018 Index Commentary

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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Once again we have hit an all-time record high for the value retention of 2-6 year old vehicles in Canada. The 103.4 mark is the highest level, on average over the 21 segments, we monitor since the index began with 2005 data. The impressive May 2018 mark of 103.4 ties with the new benchmark set last month.

The compact cars segment has set an all time record at 107.1, up 8 points from May of last year and up 0.5 from last month. The sub compact cars segment also had a strong showing, posting a 7.4 per cent gain from last year and a 1.2 per cent gain from last month, placing it amongst the biggest movers. Higher fuel prices could be helping bring some life these two segments.

Full-size pickups were among the biggest gainers this month, with a rise of one point. This is down 2.2 from the same month last year. The full-size pick-up market peaked in August 2016 and since then has dropped off by about 6 per cent. Conversely small pick-ups were up 1.3 per cent, making them one of the stronger segments this month.

Mid-size cars advanced 7.4 per cent from last year and 0.3 from last month, for an all-time record for that segment, despite the fact that consumers continue to shift their preferences to SUVs.

Sporty cars also hit an all-time high, which is not surprising given the overall index and we are entering the prime selling season for this truly fun vehicles.

To download the Index for May 2018 CLICK HERE

Canadian Black Book Used Vehicle Retention Index for December 2017 Shows Continued Gains

Media Release

Markham, ON, January 9, 2018 – Canadian Black Book releases its second Used Vehicle Retention Index for Canada, covering December, 2017.

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

Click the image to download a PDF of the December 2017 Index

December 2017, saw a 3.8 per cent gain in values year over year (YOY%) versus the same month last year. This continues the YOY% growth since 2010.

Month over month (MOM%) growth for December witnessed solid growth over November of 0.6 per cent. This is the highest MOM% gain since July of 2017, which saw a full percentage point growth.

Compact and Subcompact car were two of the strongest segments at year end at 7.0 per cent and 7.6 per cent gains respectively. These segments have been performing well of late and are experiencing a notable rebound.

Midsize Crossover/SUV are down by 2.0 per cent, capping off a year of steady decline every month. Continued weakness in the segment is expected as exports to the U.S. slow, with a rising American supply and falling prices. Over the course of 2017 the segment was down almost 5.0 per cent on average, for each month over month score.

Midsize Luxury CUV/SUV’s continued to decline in value a further 0.1 per cent. A marginal MOM% decrease, yet a larger story given the average MOM% decline was 3.3 per cent for the year. Full-Size Crossover/SUV had a gained 1.7 per cent in December, however experienced an average MOM% decline of 3.5 per cent for 2017.

Full size pickup trucks were seeing a slowdown, until the fourth quarter of 2017 when they saw an improvement, however, ending the year with a MOM% average decline of 0.4 per cent.

“We are happy to distribute our second Index and first of 2018. In general, as supply of products rise across the board, on both sides of the border, prices domestically are expected to fall. We will keep you up to date on these trends each month,” says Brian Murphy, Vice President Research and Editorial, Canadian Black Book.

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 https://blog.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 benefitted 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 lookups monthly. Canadianblackbook.com offers unique vehicle valuation tools and is a distinctly Canadian resource for car buyers and sellers.

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Click to view the December 2017 Canadian Black Book Used Vehicle Retention Index graph and table.

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

November 2017 – First Used Vehicle Retention Index for Canada

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.

Click to see the November, 2017 Index

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.

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Click to view the first ever Canadian Black Book Retention Index – 2017_11.

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