On Monday, Canadian Black Book released its Used Vehicle Retention Index for February 2023, which sits at 157.9 points (a –0.2% MOM decrease). Year-over-year, the Index has decreased –3.5%. The Index dates to January 2005, where the Canadian Black Book published a benchmark index value of 100.0 for the market.
“As we head towards the spring, the wholesale market continues its overall decline in Canada. New car inventory remains a challenge, which has been driving the prolonged high values in the Retention Index,” says David Robins, Principal Automotive Analyst and Head of Canadian Vehicle Valuations at Canadian Black Book.
The Index peaked in March of 2022 at 165 Index points. Preceding the March peak was a run of unprecedented growth in used values beginning in the late summer of 2020, when the Index was as low as 100.5 points.
Month-over-month, 10 segments saw growth, while 17 segments declined in value. Sporty Car (+4.16%), Full-Size Van (+3.48%), and Full-Size Car (+2.89%) saw the greatest strength. Near Luxury Car (-1.71%), Luxury Car (-1.16%), and Compact Crossover/SUV (-0.77%) declined the most.
Sporty Car, however, saw the largest year-over-year decrease at 12.53%. The highest year-over-year increase was Prestige Luxury Car at 16.00%.
The Canadian Black Book Used Vehicle Retention Index is calculated using CBB’s published Wholesale Average value on two to six-year-old used vehicles, as a percent of original typically equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage, and condition. The Index offers an accurate, representative, and unbiased view of the strength of today’s used vehicle market values.
