The Canadian used wholesale market continues to see prices rise, as we enter the holiday season, prices have increased for the 20th straight week. 17 of the 22 vehicle segments saw prices increase for the week, as declining inventory continues to main driver for the increasing prices. Overall, prices increased +0.25% for the week. The Car segments up +0.28% and Truck/SUV segments up +0.23%. The Compact Van segment saw the largest price increase (+2.10%) for the week, followed by Compact Car (+1.29%).
2017-2019 Average (Same Week)
Truck & SUV segments
• Overall, volume-weighted wholesale used car prices increased +0.28% for the week, continuing the positive trend for the 19th straight week. • The Compact Car segment had the largest price increase for the week (+1.29%) followed by Prestige Luxury Car (+0.55%) and Sporty Car (+0.52). • The Luxury Car segment was the only Car segment to see prices decline for the week, down -0.30%.
• Overall, volume-weighted wholesale used Truck/SUV prices increased +0.23% for the week, continuing the positive trend for the 20th straight week. • The Compact Van segment saw the largest price increase for the week +3.10%, followed by Full-Size Van (+0.97%). • Full-Size Crossover/SUV saw the biggest decrease (-1.04%), followed by Minivan (-0.53%).
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 $32,000. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.
The Canadian wholesale market continues to increase yet again. This past week, almost 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 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.
Economics & Government
• Canadian economy posted its 5th straight monthly gain, as GDP increase 0.8% for the month of October. • Omicron variant has led federal and provincial governments to implement new restrictions and cancel some holiday festivities. • The Canadian dollar remains stable, finishing the week at $0.78.
In the U.S., overall Car and Truck segments (-0.01%) decreased for the first time in sixteen weeks; the prior week increased by +0.11%.
Volume-weighted Car segments decreased -0.08%, compared to the prior week’s increase of +0.04%:
Compact Cars decreased for a fourth consecutive week, -0.32% after the prior week’s decline of -0.16%.
Mid-Size Cars continue to increase. This past week’s increase of +0.14% marks the nineteenth week of gains for an average weekly increase of +0.62%.
The Premium Sporty Car segment declined -0.31% last week, compared to -0.05% the week prior.
Volume-weighted Truck segments increased +0.02%; the previous week had an increase of +0.15%:
Full-Size Vans reported another week of gains, increasing +0.68%. This now marks the forty-seventh increase in the last forty-eight weeks.
The other two van segments, Compact and Minivan, also reported increases of +0.76% and +0.58%, respectively. Compact Luxury Crossovers experienced the largest decline, -0.34%, the week prior declined -0.08%.
• Volkswagen has once again teased the production version of the ID.Buzz concept first shown in 2017.
• Honda has filed to trademark ADX with the United States Patent and Trademark Office (USPTO), presumably so it can use the name for an upcoming luxury model.
• Mercedes EQE originally unveiled at the Munich Auto Show back in September has been sighted in Los Angeles presumably preparing a North American launch
• FedEx Receives First Electric Vans from GM's BrightDrop Venture