The Canadian used wholesale market saw overall prices decline slightly for the 3rd straight week (-0.14%). Both the Car segment and the Truck/SUV segment saw prices decline for the week, -0.11% and -0.16% respectively. Commercial vehicles saw the largest price increase for the week, as Full-Size Vans increased by +1.14% and Compact Van increased by +0.79%. Full-Size Crossover/SUV saw the largest price decrease for the week (-0.79%), followed by Full-Size Luxury Crossover/SUV (-0.60%).
2017-2019 Average (Same Week)
Truck & SUV segments
• Overall, the volume-weighted wholesale used Car prices decreased by -0.11% for the week. • The Full-Size Car segment had the largest price increase (+0.62%), followed by Mid-Size Car (+0.19%) and Premium Sporty Car (+0.07%). • The Luxury Car segment saw the largest prices drops for the week, down -0.43% followed by Near Luxury Car (-0.32%) and Sporty Car segment (-0.23%) for the week.
• Overall, volume-weighted wholesale used Truck/SUV prices decreased for the 3rd straight week (-0.16%). • The Full-Size Van segment saw the largest price increase for the week (+1.14%), followed by Compact Van (+0.79%) and Sub-Compact Luxury segment (+.04%). • Full-Size Crossover/SUV segment saw the largest prices declines for the week (-0.79%), followed by Full-Size Luxury Crossover/SUV segment (-0.60%).
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 $37,000. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.
The Canadian wholesale market has continued to remain stable overall but is remains slightly into the negative territory again. 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 50% 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
• Bank of Canada hikes interest rates by 0.5% for the first time in 22 years. BoC benchmark interest rate now sits at 1.0%. • BoC raises its inflation outlook, they now expect the year to average 5.3% growth, up from 4.2% in January. • The Canadian dollar fell slightly at against the USD, finishing the week at $0.79.
In the U.S., overall, Car and Truck segments (-0.20%) decreased for a seventeenth consecutive week; the prior week decreased by -0.15%. Volume-weighted Car segments increased +0.05%, compared to the prior week’s increase of +0.12%: • Five of the nine Car segments increased last week. • Compact (+0.45%) and Sub-Compact (+0.25%) Cars reported the largest increases last week. Compact Cars marked the fourth consecutive week of increases, with the segment reporting an average weekly increase of +0.38%. • The Luxury segments were the only Car segments to have declines last week with Near Luxury Car moving down -0.34%, followed by Prestige Luxury Car at -0.30%, then Luxury Car (-0.20%) and Premium Sporty Car (-0.12%).
Volume-weighted Truck segments decreased by -0.33%; the previous week had a decrease of -0.28%: • Four out of the thirteen Truck segments reported increases. • Compact Crossovers increased for a third consecutive week, up +0.28% after the prior week’s increase of +0.24%. • The Full-Size Crossover/SUV (-2.14%) segment reported the largest decline last week after the previous week’s already large decline of -1.70%. • Despite high fuel costs, Sub-Compact Crossovers continued to decline (-0.01%) last week, which marks seventeen consecutive weeks so far.
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