Toronto, Ontario — Canadian Black Book recently released its used vehicle valuations for October, which marked a 1.1 percent drop in the industry’s Used Vehicle Retention Index, down from 160.3 to 158.5 points.
Used vehicle valuations in Canada currently sit in line with numbers recorded in December of 2021.
The report did show that year-over-year increases in valuation are considerable, however, as the index for October 2022 sits at a value 13.7 percent higher than the same time last year.
Overall value growth is shown to be on the decline as the year started with year-over-year growth of 44.1 percent, before steadily declining to 28.9 percent in June, and finally 13.7 percent now.
“The wholesale market is beginning its correction after two years of shocking increases,” said principal automotive analyst and head of Canadian vehicle valuations at Canadian Black Book, David Robins. “This won’t happen overnight, and likely will not return to pre-pandemic levels, however, we do expect the downward trend to continue.”
The industry’s current index of 158.5 points means that used vehicle values have grown by 58.5 percent from the benchmark of 100 points set in 2005 when the index was first introduced.
The last time the index was near the benchmark was in May and June 2020, when it sat at 100.5 points.
The full Canadian Black Book Used Vehicle Retention Index report for October 2022 can be found here.