CBB Weekly Automotive Market Update 03/29/2022

March 29 2022
CBB

To download this report as a PDF, click here.

Wholesale Prices, Week Ending March 25th

The Canadian used wholesale market saw overall prices increase slightly for the week (+0.09%). Both the Car and Truck/SUV segment saw similar increases for the week, up +0.11% and +0.07% respectively. Full-Size Commercial Vans continue to outperform the overall wholesale market, as prices increase by +1.51%. Additionally, Sub-Compact Car segments saw prices increase +0.98%, as consumers look for more fuel-efficient vehicles. The Compact Van segment saw the largest price decrease for the week (-1.94%), followed by Full-Size Crossover/SUV (-0.61%).

  This Week Last Week 2017-2019 Average (Same Week)
Car
segments
+0.11% -0.10% +0.01%
Truck
& SUV segments
+0.07% -0.09% -0.19%
Market +0.09% -0.10% -0.09%

Car Segments

• Overall, the volume-weighted wholesale used Car prices increased by +0.11% for the week.
• The Sub-Compact Car segment had the largest price increase for the week (+0.98%), followed by Mid-Size Car (+0.51%) and Compact Car (+0.46%).
• The Luxury Car segment saw the largest prices drops for the week, down -0.21% followed by Full-Size Car (-0.19%) and Near Luxury Car Segment (-0.07%) for the week.

Truck Segments

• Overall, volume-weighted wholesale used Truck/SUV prices increased by +0.07%.
• For the 6th straight week, the Full-Size Van segment saw the largest price increase (+1.51%), followed by Sub-Compact Crossover (+0.72%) and Compact Luxury Crossover/SUV (+0.27%).
• Compact Van segment saw the largest prices declines for the week (-1.94%), followed by Full-Size Crossover/SUV (-0.61%) and Mid-Size Luxury Crossover/SUV (-0.37%).

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 $36,500. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.

Wholesale

The Canadian wholesale market has continued to remain stable overall but is lifted into the positive territory. Newer vehicles tend to be outperforming vehicles aged three years and older. Supply remains low while demand continues to soften on both sides of the border. Upstream channels continue to tap supply before it can be made available at physical auctions. Conversion rates increased this past week, as rates were observed into the 55% 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.

Canadian Black Book’s Market Insights

Economics & Government

• Canadian consumer prices increased 5.7% year over year in February, up from 5.1% gain in January. Canadian motorist paid 32.3% more at the pump compared with February 2021.
• Consumer confidence slides to 15 months low. Rising inflation and uncertainty on the war in Ukraine among Canadians biggest concerns.
• 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 (-0.28%) decreased for a fourteenth consecutive week; the prior week decreased by -0.51%.

Volume-weighted Car segments decreased -0.07%, compared to the prior week’s decrease of -0.52%:

• Three of the nine Car segments increased last week.
• Sub-Compact Cars increased for a second week, up 0.10% last week after the previous week’s increase of 0.07%.
• Compact Cars moved into positive territory last week with an increase of 0.33%.
• Premium Sporty Car reported the largest Car segment decline last week at -0.48% and Full-Size Cars (-0.44%) had the second largest decline.
• Sporty Car (-1.49%) reported the largest decline, but Prestige Luxury Car was not far behind at -1.39%.

Volume-weighted Truck segments decreased by -0.39%; the previous week had a decrease of -0.51%:

• Ten out of the thirteen Truck segments reported declines.
• Compact Vans (+0.34%) returned to increases last week after seven weeks of declining values.
• The Small Pickup segment also returned to positive territory last week with a gain of +0.08% after 10 consecutive weeks of declines.
• Compact Luxury Crossovers (-0.73%) and Mid-Size Crossovers (-0.76%) reported the largest declines last week.

Industry News

• Chrysler parent Stellantis and South Korea’s LG Energy Solution say they will invest $4 billion to build an electric vehicle battery plant in Windsor, Ontario.
• GM Patents See-Through Windshield Pillars for Better Visibility
• Tesla Inc. said it’s planning a second stock split in roughly two years, giving a lift to shares that had been trading lower on news COVID-19 is again disrupting operations.
• Toyota GR Corolla hot hatch will debut March 31. The new performance model is rumored to use the same 257-hp turbocharged 1.6-liter three-cylinder from the GR Yaris that's sold overseas.