A shortage of supply and high demand means used vehicles are more valuable than they ever have been, according to a new report.
The Used Vehicle Retention Index for September 2021 from Canadian Black Book (CBB) hit a score of 132.6 points in September. That represents a jump of 4.8 points (3.8 per cent) from August. It’s the single-biggest month-over-month jump ever, eclipsing March of this year, which was a 4.1-point jump.
The Index offers an accurate, representative and unbiased view of the strength of today’s used vehicle market values. It 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’s benchmark is set at 100.0 for the market. So a score of 132.6 means used vehicles are 32.6 percent more valuable than the benchmark.
“Continued supply disruptions are causing havoc for OEMs and retail channels alike. Delays, coupled with strong demand, have sent retained values skywards with no immediate end in sight,” said Yolanda Biswah, senior vice president and general manager at CBB.
An announcement from CBB noted that the most recent index report is an “impressive” 21.7 per cent higher compared to the sale time last year.