DesRosiers - CUVR 2017 - Canadian Used Vehicle Report - 108

2017 Retained Value Award Winners

canadianblackbook.com

10th Year for Canadian Black Book Best Retained Value Awards
Unveils New 'Overall Brand' Winners

Section

108

Markham, ON, February 14, 2017 - The 2017 Canadian Black Book Best Retained Value Awards mark the tenth annual
presentation of the sought after auto industry accolades. The tenth anniversary awards were announced today in 20
vehicle categories and for the first time, three 'Overall Brand' winners.
The first ever Canadian Black Book Best Retained Value 'Overall Brand' Award for Car goes to Subaru; in Truck/SUV the
winner is Toyota; and in Luxury the Award goes to Porsche.
"After a decade of presenting these awards, we've established that it is necessary to recognize the brands that really
excel in terms of retained value, across all their products," says Brad Rome, President, Canadian Black Book. "That said,
our number one priority in presenting these awards, is to help consumers know what models and brands provide the best
opportunity to save money in the long term."
According to J.D. Power's monthly PIN Automotive Market Metrics report, 54 per cent of auto loans are 84 month
terms or longer, with 43 per cent of all car deals involving a trade-in. The really concerning issue is that in 30 per cent of
those deals, the vehicles are worth less than what is owed on it. The Retained Value Awards enlighten consumers on the
importance of understanding depreciation and the diﬀerence it can make on negotiating your next vehicle purchase.
Imagine after four years of owning a vehicle with only 30 per cent retained value, versus one of the better award
winning vehicles at 50 per cent, the loss would be $7,000 more in depreciation on a typical $35,000 car. The weaker value
retention will not only aﬀect what the current car is worth at the end of the loan, but result in larger payments for the
next car as the trade-in will be worth less.
"Depreciation is the single largest expense of owning a vehicle, more than gas, maintenance or insurance.
Understanding your vehicle's retained value is extremely important for anyone researching to buy, sell or trade-in any
vehicle," says Brian Murphy, VP Research and Editorial, Canadian Black Book.
"We also recommend that buyers research the future value of their next purchase on canadianblackbook.com to help
ensure a positive equity position at the end of their next term."
The 'Overall Brand' awards are decided upon, by taking an average retained value over four years for every vehicle an
OEM brand oﬀers, in the three categories. The highest average in each category gets the trophy. From a brand perspective,
it is also worth noting that Toyota has come away for the 10th consecutive year as the winningest brand with nine total
wins, including its 'Overall Brand Truck & SUV' victory.
The 2017 edition of the awards go to those 2013 models (four year old vehicles), which retained the highest percentage
of MSRP in the 20 categories. This year has proven to be a record breaking year, with the Toyota FJ Cruiser (Mid-Sized SUV)
holding 83 per cent of its original MSRP, the highest percentage of any winning vehicle ever. The Jeep Wrangler (Compact
SUV) and the Toyota Tacoma (Small Pick-up) both held 82 per cent, which also broke the previous all-time high of 79 per
cent posted last year by the Wrangler. It is the seventh consecutive win for the Wrangler, and the eighth straight for the
Tacoma and Toyota Tundra (Full-Size Pick-up).
These record highs are reflected in the overall scope of used vehicle value performance for the year. When Canadian
Black Book analyzed their data for this year's awards, they concluded that on average across the board, wholesale values
are up about one per cent from last year, with an average Canadian used vehicle retained value after four years of 50.6 per
cent for 2017.
"These new records are truly astonishing achievements, considering the average vehicle today loses around 30 per cent
of its value in the first year alone," says Murphy. "My best advice to consumers is to consider those vehicles that have a
history of strong value retention, to minimize the inescapable eﬀects of depreciation on your bottom line," adds Murphy.
In terms of the categories that depreciate least, in 2017 small pick-ups retained 73 per cent of MSRP over four years,
as a group. Full-size Luxury SUVs are next at 60 per cent, then full-size pick-ups at 59 per cent and full-sized SUVs at 58
per cent. "Canadian market demand and US demand for Canadian used trucks and SUVs are driving up their retained and
future values. To get the most bang for your buck, it seems trucks and SUVs are currently the best bet," says Murphy. Subcompact cars hold the least amount of their value at 37 per cent (according to 2017 Canadian Black Book data).
CanadianBlackBook.com maintains a database of car and truck values dating back to 2002. The website oﬀers three
free values calculators - one that allows consumers to look up trade-in values before they head to the dealer, another that
shows future values, and a third that shows average asking price. The company is currently working on delivering new
consumer research tools.
Canadian Used Vehicle Report

2017 Edition

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