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For the moment, it appears used vehicle prices have hit their peak and just might be receding.
After a decrease in Canadian Black Book’s Used Vehicle Retention Index for April, May’s index shows a flattening of the curve.
The index hit a high of 165 points in March — meaning vehicles are 65 per cent higher than the baseline set by Canada Black Book. In April, that number dropped to 162.5 points and remained the same in May. That ended a streak of monthly increased values since August 2021.
Still, used vehicle values were almost 32 per cent higher in May 2022 compared to the year before.
“Given wider inflationary trends throughout the economy, skyrocketing gas prices, rising interest rates, any relief in prices is a welcome sign,” said James Hancock, director of OEM strategy and analytics at Canadian Black Book.
However, he added that wholesale prices will remain high into 2023.
“We anticipate 2022 to see a plateau for prices, with a gradual decline over the next couple years, however, prices are expected top remain well above pre-pandemic levels into 2026 and possibly beyond,” he noted.