CBB Weekly Automotive Market Update 11/16/2021

November 16 2021

Wholesale Prices, Week Ending November 12th

The Canadian used wholesale market continued to be red-hot as prices increased for the 14th straight week. 20 of 22 vehicle segments saw prices rise, as supply of new and used vehicles continues to decline and dealers struggle to fill their lots. Overall, prices increased +1.17% for the week, highest overall increase seen in recent history. The Car segments up +0.74% and Truck/SUV segments up a record +1.60%. The Mid-Size Car segment saw the largest price increase (+2.92%) for the week, followed by Sub-Compact Crossover and Compact Car both at +2.63%. 

  This Week Last Week 2017-2019 Average (Same Week)
Car segments +0.74% +0.42% -0.44%
Truck & SUV segments +1.60% +0.98% -0.27%
Market +1.17% +0.70% -0.36%

Car Segments

• Overall, volume-weighted wholesale used car prices increased +0.74% for the week, continuing the positive trend for the 14th straight week.

• The Mid-Size Car segment had the largest price increase for the week (+2.92%) followed by the Compact Car segment (+2.63%), and the Sub-Compact Car segment (+2.40%).

• 7 of 9 car segments had prices increase – with only Prestige Luxury Car and Premium Sporty Car seeing prices decline for the week, down -0.38% and 0.01% respectively.

Truck Segments

• Overall, the Truck/SUV segments saw record price increases for the week. Collectively, the Truck/SUV segments were up +1.60% for the week.

• The Sub-Compact Crossover segment had the largest price increase for Truck/SUV segments at +2.63%, followed by the Compact Crossover/SUV segment (+2.43%) and the Full-Size Crossover/SUVs segment (+2.40%).

• Full-Size Pickups was the only segment to see an increase of under 1.00% for the week (+0.77%).

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 above $30,600. Analysis is based on approximately 110,000 vehicles listed for sale on Canadian dealer lots.

The number of used active listings rebound slightly, however remains below 106,000 -- the lowest point in the last 3 years. The 14-day moving average has now sits at ~105,900 units. Days-to-turn remains stable at ~49 days (unchanged from last week).

Canadian Black Book’s Market Insights

Economics & Government

• Gas prices continue to rise, finishing at 148.3 cent/liter on November 9th, 92.8% higher than the lowest point during the pandemic. 

• Canadian Consumer confidence is steadying and remains positive after 5 months if declines from the recent high set in June 2021.

• The Canadian dollar remains stable around the $0.80 to finish the week.

Industry News

• General Motors removing heated seats from crossovers, pickups due to chip shortage.

• Vietnamese automaker VinFast said on Friday it will make over $200 million in capital investments and place its U.S. headquarter in California as part of its plan to expand operation in North America.

• Tesla has reportedly been shipping out some cars without USB ports due to the chip shortage.

Canadian Wholesale

The Canadian wholesale market continues to increase yet again. This past week, nearly all segments reported increasing values.

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 remained strong this past week. Rates were observed into the 70% range on some lanes last week, with the few low kilometer, good condition units garnering high levels of bidding activity and premium pricing.  Many sellers are still choosing to set their floor pricing at higher levels and are willing to re-run a vehicle in the pursuit of a higher price. 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.

U.S. Market

• In the U.S., overall Car and Truck segments (+0.56%) increased for an eleventh week; the prior week increased by +0.65%.

• All nine car segments reported gains again last week.  

• Compact Cars had another large increase last week, +1.27%, compared to the prior week’s increase of +1.45%. This marks the thirteenth consecutive week of gains.

• Mid-Size Cars continue to have large increases, but the rate of increase is slowing. This past week was +0.95%, compared to the week prior at +0.95%, and the week before that was +1.08%.

• Volume-weighted Truck segments increased +0.65%; the previous week had an increase of +0.66%

• All thirteen truck segments reported gains last week.

• Full-Size Vans are on a hot streak due to their limited new and used availability, reporting a gain of +1.31%, compared to the week prior at +1.02%. 

• The Compact segments, both mainstream (+0.88%) and luxury (+1.02%), reported large gains. However, both were smaller increases than the week prior at +1.03% and +1.15%, respectively.