Canadian Black Book recently released its Used Vehicle Retention Index, which shows a marginal increase for May 2023. The May index sat at 158.8 points, which represents a 0.8% month-over-month increase and a year-over-year decrease of 2.4%.
“The spring market has pushed wholesale values up in May as demand in Canada and exports to the (United States) have increased,” said David Robins, Principal Automotive Analyst and Head of Canadian Vehicle Valuations at CBB, in a statement. “Used Cargo Vans have been very strong as new supply has been unable to keep up with demand.”
CBB said the index experienced a run of “unprecedented” growth in used vehicle values late in the summer of 2020, when it was as low as 100.5 points before it peaked in March 2022 at 165 points.
Thirteen segments experienced growth month-over-month, including compact vans (+3.86%), full-size vans (+2.38%), and full-size pickups (+2.23%). On the down side, sub-compact crossovers (-1.51%), prestige luxury cars (-1.38%), and premium sports cars (-0.83%) were the segments that experienced the greatest decline.
“(Sports cars) saw the largest year-over-year decrease at -12.12%,” said CBB in its update. “The highest year-over-year increase was again prestige luxury car(s) at 9.54%.”
CBB’s Used Vehicle Retention Index is calculated using data from the company’s published Wholesale Average value on two to six-year-old used vehicles.
