While the values of used vehicles didn’t increase all that much in September compared to the month before, the bump did end a three-month run of decreasing values.
Canadian Black Book’s Used Vehicle Retention Index for September 2022 shows a 0.3 per cent increase to 160.3 index points. This is on par with July. Compared to 2021, however, used vehicle values are 20 per cent higher.
For the year overall, the index is down 1.1 per cent. In January, the index sat at 162.1, peaking at 165 points in March. Late in the summer of 2020, the index was at 100.5 points.
A score above 100 represents what percent higher prices are compared to the Canadian Black Book’s baseline for used vehicle prices that were set in 2005. So vehicles as of September were 60.3 per cent higher than when the index first began.
“After the crazy ride the Index took from 2020 to March of this year, it seems as if prices have somewhat stabilized,” said David Robins, principal automotive analyst and head of Canadian vehicle valuations at Canadian Black Book. “We are seeing more normal fluctuation month-to-month. That said, this stabilization is occurring at a much higher price point compared to past years.”
Only full-size pickups failed to see value growth compared to last September, down 4.55 per cent. The sub-compact car (47.58 per cent) and compact car segments (43.1 per cent) saw the most growth year-over-year. Both trends are likely attributable to the rising cost of gasoline, the company’s analysis speculated.