MARKHAM, Ontario -

The compact car, compact crossover and mid-size car segments were at new all-time highs for retained value in September 2019, as the Canadian Black Book Used Vehicle Retention Index has again hit a new all-time record high in the month of September. 

“It is very rare for three segments to all experience new highs in a given month,” Canadian Black Book wrote in a news release about the September 2019 index. The company reported that sub-compact cars just missed setting a record high as well for retained value.

As for the overall new all-time record high for September, the new top score is 108.3, which is higher by a full index point from last month. CBB notes that its index is based on January 2005 as a starting point. At that time, the index started at 100.

“Given the record-high prices, we are seeing trade-ins are worth a lot more than before, and more leases are in a positive equity position at the end of the term,” CBB vice president, research & analytics Brian Murphy said.

Murphy continued, “Therefore we are seeing fewer of those vehicles at auction as more are bought out by the consumer and often traded in shortly thereafter for use as a down payment on a new vehicle.”

CBB said that for almost 15 years, Canadian Black Book has tracked how 20 market segments perform.  The index hit a low of 74.8 in February of 2009. It has now risen by more than 33 points to the present level, since inception.

CBB provided an example showing that a used vehicle worth $10,000 in February 2009 would be worth almost $15,000 today. The company described that as “a substantial increase in retained value and one that makes a significant difference to how the Canadian industry functions.”

According to the report, the compact car, full-size van and sub-compact car segments have risen the most over the past year. Over the past 30 days from Oct. 18, the compact car, sporty car and sub-compact car segments gained the most.

Several segments showed a negative trend, however.

The entire industry on average is up 4.7 points since 2018, but compact luxury CUV/SUV is lower by 4.1 points. Luxury car and small pick-up have also acted contrary to market trends, showing declines. Over the past 30 days, full-size car, luxury car, and small pick-up also did not follow the trend for September, losing retained value.

“Heading into the last quarter of the year we will certainly be interested to see if the market continues its positive trend, or if we will finally see some negative trending in the marketplace after so many months of record high levels,” Murphy said.

This Index, which offers insights and statistics regarding the health of the used wholesale vehicle market across all regions in Canada, is calculated using Canadian Black Book’s published Wholesale Average value on two- to six-year-old used vehicles, as a percentage of original typically-equipped MSRP.