For the first week since mid-August the Canadian used wholesale market did not see prices increase, Prices for both the Car segment and Truck/SUV slightly decline last week, as the market take a slight pause after the holiday season to reassess the latest Covid-19 restrictions across Canada. Overall, prices decreased -0.10% for the week. The Car segments was down -0.08% and Truck/SUV segments down -0.12%. The Full-Size Pickup- segment saw the largest price decrease (-1.12%) for the week, followed by Full-Size Crossover/SUV (-0.97%).
2017-2019 Average (Same Week)
& SUV segments
• Overall, volume-weighted wholesale used car prices decreased -0.08 for the week, stopping the 20-week positive trend. • The Sub-Compact Car segment had the largest price increase for the week (+0.48%) followed by Mid-Size Car (+0.39%) and Compact Car (+0.35%). • The Sporty Car segment saw the largest price decline for the week (-.48%) followed by Full-Size Car (-0.31%) and Premium Sporty Car (-0.25%).
• Overall, volume-weighted wholesale used Truck/SUV prices decreased -0.12% for the week. The first week since mid-August to see prices decline. • Commercial Vehicles saw the largest price increase for the week, as Compact Van and Full-Size Van saw prices increase 1.14% and 1.11% respectively. • For the 2nd straight week, Full-Size Pickup segment saw the biggest price decrease (-1.12%), followed by Full-Size Crossover/SUV (-0.97%).
Used Retail Prices & Listing Volumes
The average listing price for used vehicles continues to hit historic highs week-over-week, as the 14-day moving average now sits slightly below $32,750. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.
The Canadian wholesale market decreased overall for the first time in nearly
Supply remains low while demand continues to be strong on both sides of
the border. Upstream channels continue to tap supply before it can be available
at physical auctions.
Conversion rates weakened this past week as market demand cool slightly. Rates were observed into the 60% range on some lanes last week, with the few low kilometer, good condition units garnering high levels of bidding activity. In general, the quality of vehicles at auction remains somewhat below average as the supply of better-quality vehicles continues to be bought upstream. The U.S. market exchange rate is similar compared to the previous week and remains favourable for exportation when price and demand are taken into consideration.
Canadian Black Book’s Market Insights
• Economics & GovernmentUnemployment rate remains slightly above pre-pandemic level at 5.9% in December. • Consumer confidence continues to erode, in the wake of a focus on the Omicron variant, says Nano Report. • The Canadian dollar remains stable against the usd, finishing the week at $0.79.
In the U.S., overall Car and Truck segments (-0.15%) decreased for a third consecutive week; the prior week decreased by -0.03%.
• Volume-weighted Car segments decreased -0.20%, compared to the prior week’s decrease of -0.10%: All nine Car segments declined last week. This is the first time this has happened since the second week of August 2020. • Compact Cars had the largest decline last week at -0.31%, marking the sixth consecutive week of decreases for an average rate of -0.25%.Mid-Size Cars ended their twenty-week streak of increases with a decline of -0. 06%.
Volume-weighted Truck segments decreased by -0.13%; the previous week had an increase of +0.01%: • Seven out of the thirteen Truck segments reported declines.Compact • Crossovers had the largest decline last week at -0.41%, marking the fourth consecutive decline for the segment. • Full-Size Vans reported another week of gains, increasing +0.40%. This now marks the forty-ninth increase in the last fifty weeks. • The other two van segments, Compact and Minivan, also reported increases of +0.80% and +0.10%, respectively.
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