The Canadian used wholesale market saw prices slightly decline for the week. Prices for both the Car and Truck/SUV segments declined slightly last week as buyers/dealers reassess the latest Covid-19 restrictions across Canada. Overall, prices decreased -0.05% for the week. The Car segments were down -0.01% and Truck/SUV segments were down -0.09%. 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)
Truck & SUV segments
• Overall, volume-weighted wholesale used car prices decline modestly for the week (0.01%), marketing the 2nd straight week of price declines. • The Sub-Compact Car segment had the largest price increase for the week (+0.97%) followed by Sporty Car (+0.38%) and Compact Car (+0.33%). • Prestige Luxury Car saw the largest price decline for the week (-0.74%) followed by Mid-Size Car (-0.52%) and Premium Sporty Car (-0.21%).
• Overall, volume-weighted wholesale used Truck/SUV prices slightly declined for the week (0.09%), this being the 2nd straight week of declining prices. • Commercial Vehicles saw the largest price increase for the week as Full-Size Van and Compact Van saw prices increase +1.24% and +0.54% respectively, followed by Compact Crossover/SUV (+0.24%) • For the 3rd straight week, Full-Size Pickup segment saw the biggest price decrease (-0.84%), followed by Full-Size Crossover/SUV (-0.75%) and Sub-Compact Crossover (-0.55%).
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 around $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 second week in a row.
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 cooled slightly. Rates were observed into the 65% 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 & Government
• Housing prices still forecasted to rise in 2022 even with expected interest rate hikes says Royal Lepage. • Canadian economy added 55,000 jobs in December 2021. • The Canadian dollar rose slightly against the USD, finishing the week at $0.80. U.S. Market In the U.S., overall Car and Truck segments (-0.13%) decreased for a fourth consecutive week; the prior week decreased by -0.15%.
Volume-weighted Car segments decreased -0.19%, compared to the prior week’s decrease of -0.20%:
• Eight of the nine Car segments declined last week. Sub-Compact Car reported a gain of +0.18%. • Premium Sporty Cars had the largest decline last week, at -0.35%. • Full-Size and Mid-Size Cars also had large decreases, -0.27% and -0.25%, respectively.
Volume-weighted Truck segments decreased by -0.11%; the previous week had a decrease of -0.13%:
• Ten out of the thirteen Truck segments reported declines. • Compact Luxury and Mid-Size Luxury Crossovers had the largest declines last week, at -0.34% and -0.37%, respectively. • Full-Size Vans reported another week of gains, increasing +0.74%. This now marks the fiftieth increase in the last fifty-one weeks. • The other two van segments, Compact and Minivan, also reported increases of +0.94% and +0.08%, respectively.
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