The Canadian used wholesale market continued to be red-hot as prices increased for the 15th straight week. Prices have risen in all 22 vehicle segments as the supply of new and used vehicles continues to decline and dealers have difficulty filling their lots. Overall, prices increased +1.23% for the week, highest overall increase seen in recent history. The Car segments up +1.00% and Truck/SUV segments up a record +1.46%. The Full-Size Car segment saw the largest price increase (+2.54%) for the week, followed by Sub-Compact Crossover (+2.42%) and Compact Crossover/SUV (+2.41%).
2017-2019 Average (Same Week)
Truck & SUV segments
• Overall, volume-weighted wholesale used car prices increased +1.00% for the week, continuing the positive trend for the 13th straight week.
• All 9 car segments had prices increase – with Premium Sporty Car seeing the smallest prices increase for the week (+0.14%).
• The Full-Size Car segment saw the largest price increase for the week (+2.54%) followed by the Mid-Size Car (+2.33%), and Compact Car (+2.15%).
• For the 10th consecutive week, all 13 Truck/SUV segments saw prices increase. Collectively, the Truck/SUV segments were up +1.46% for the week.
• The Sub-Compact Crossover segment had the largest price increase for Truck/SUV segments at +2.42%, followed by Compact Crossover/SUV (+2.41%) and Minivan (+1.99%).
• Small Pickup (+0.07%) had the smallest increase for the week.
Economics and Government
• Damages and Repairs could make B.C. floods Canada’s most expensive natural disaster, while having a significant economic impact.
• The Canadian dollar remains stable around the $0.81 to finish the week.
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 75% range on some lanes last week, with the few low kilometer, good condition units garnering high levels of bidding activity and premium pricing. 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.
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