Resale Market Update April 2021

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Resale Market Update 
April 2021
 
April 20, 2021
Volatility has been shadowing the automotive sector since the pandemic started. Today in Canada, "new and used supply is staggeringly low", writes Daniel Ross, Senior Automotive Analyst for Canadian Black Book.
DELAYS CAUSE VOLATILITY

Soon after initial lock-down last year, pent-up demand set in, driving wholesale and used retail values higher, but the supply was not there. That was months ago, and supply is still short.
 
Delays and More Delays - Why?
  • Initial lockdown caused OEM production delays
  • New safety processes, reduced shifts, COVID outbreaks, and employee fears
  • Parts shortages, such as memory chips and lithium
  • Trade disputes and Brexit
  • Fewer trade-ins, lower fleet turn-over, fewer kilometres driven
  • The recent Suez Canal blockage also increased pressure on vehicle production in Canada
What Now? What's Next? (Daniel's full article)
USED VEHICLE VALUES SMASH RECORDS
Used Vehicle Retention Index - 2005 to Mar 2021
Canadian Black Book
The Used Vehicle Retention Index for March 2021
hits 118.6 points - an all-time record!
 
This Index offers an accurate, unbiased view of the strength of today’s used vehicle market values. In January 2005 Canadian Black Book (CBB) published a benchmark index value of 100.0 for the market.

Index value is calculated using CBB’s wholesale average value on 2-6 year-old vehicles, as percent of original MSRP. It is then weighted based on several factors.
March 2021 Index Details
If you are looking to maximize resale value, contact your Summit Fleet Representative or use the links below.
1-855-402-2525
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