Used values tick up in May

Used vehicle values moved up last month but are still down overall year-over-year, according to data from Canadian Black Book.

Its Used Vehicle Retention Index now sits at 158.8 points, up eight-tenths of a point for May. Compared to the same time last year, the index is down 2.4 per cent.

“The spring market has pushed wholesale values up in May as demand in Canada and exports to the USA have increased,” observed David Robins, principal automotive analyst and head of Canadian vehicle valuations at Canadian Black Book. “Used Cargo Vans have been very strong as new supply has been unable to keep up with demand.”

Last March, the index hit its peak of 165 points, representing the value of used vehicles being 65 per cent higher than the index’s benchmark. The index last was at or near the benchmark in late summer 2020 with a score of 100.5 points.

The index is using Canadian Black Book’s calculated wholesale average value on two to six-year-old used vehicles, as a percent of the original typically equipped manufacturer’s suggested retail price.

The increase in used values adds a wider gap to the ‘repair or replace’ debate. DesRosiers Automotive Consultants recently reported that the average price of a light vehicle in Canada is about $50,000.