A summer scorcher…for used-vehicle values
It’s another value retention record.
Canadian Black Book’s CBB Used Vehicle Retention Index market average for August set a new record for two- to six-year-old vehicles at 107.2. That is a gain of 3.7 points from last year at the same time.
Also, continuing a positive trend showing a two-point gain across all industry segments so far in 2019, the index produced a 0.3-point gain from July.
CBB says the index offers unbiased and accurate insights and statistics regarding the health of the used wholesale vehicle market in Canada.
The report also showed some trends. One of them: Car values are strong. When it comes to retained value, the market strongly disagrees with rumors that cars are dead.
Compact cars gained 10 points over 2018 and 2.5 points from July, setting a new record of 116.3. As for mid-size cars, they also set a new record of 107.4. That is an increase of 5.5 points from last year and 1.4 points from July.
“These are impressive records in a market where the commonly held belief is that market demand fully switched over to SUV/crossover,” Canadian Black Book said in a news release.
Full-size cars were also up by 2.2 points in August.
Although most of the market sizzled, a few segments experienced a chilly August. No record lows occurred in values, but compact luxury CUV/SUVs dropped by 5.4 points from 2018 and 1.1 points from July. Although that segment was at an all-time high in July 2018, it has seen a decline since then. The smaller luxury CUV/SUVs, however, still outperform the industry average for retained value, according to CBB. The index has also seen minivans fall about 4.1 points compared to last year and 1.7 points from July.