CBB Weekly Automotive Market Update 6/22/2021

June 22 2021
CBB

Wholesale Prices, Week Ending June 18 th

The Canadian used vehicle wholesale market saw prices steady this week, with a modest +0.08% increase. Led by the Premium Sporty Segment, used cars outperformed the overall market increasing by +0.26%, which was slightly lower than last week’s increase of +0.34%. The Truck/SUV segment took a slight pause this week, with prices decreasing -0.10%; prices for Trucks/SUVs still remain historically high.

  This Week Last Week 2017-2019
Average (Same Week)
Car
segments
+0.26% +0.34% -0.10%
Truck
& SUV segments
-0.10% +0.36% -0.28%
Market +0.08% +0.35% -0.19%

Car Segments

• Used cars had another overall positive performance with a weekly change of +0.26% - slightly weaker compared to last week’s increase (+0.34%).
• A majority of the weekly price increase was driven by the Premium Sporty Car segments which were up +1.38% from the prior week.
• Sporty Car (+0.30%), Full-Size Car (+0.16%), and Prestige Luxury Car (+0.06%) segments also saw increases from the prior week.
• More than half of the car segment showed decreases vs prior week, with Compact Cars (-0.45%) having the weakest performance, followed by Luxury Cars (-0.22%), and Mid-Size Cars (-0.10%).

Truck Segments

• Overall, Truck segment weekly values decreased -0.10% - the first decline since February 12th, 2021.
• The slight decline in price was attributed to lower sales rate for SUVs with Sub-Compact Luxury Crossovers seeing the biggest drop (-1.00%), followed by Mid-Size Luxury Crossover/SUVs (-0.54%) and Full-Size Luxury Crossover/SUVs (-0.45%).
• Compact Van and Small Pickup segments led the Truck/SUV segments with increases of +1.00% & +0.67%, respectfully.

Used Retail Prices & Listing Volumes

Used vehicle average listing prices continued their upward trend this past week when looking at both the 14-day moving average (now at ~$26,700) and the 28-day moving average.
Analysis is based on approximately 140,000 vehicles listed for sale on Canadian dealer lots.

Active listing volume took a slight dip this past week, with the 14-day moving average now at slightly above 140,800. Active listing volume began showing positive movement in early April and we are now seeing a continuation of that trend.

Volume

Used Retail

Listing volume fell slightly compared to the previous week, with the CBB Listing Volume Index remaining at 1.098. The index continues to show that overall listing volume is at higher levels than this time last year.

Wholesale

The Canadian wholesale market strengthened further this week. The increases seen this week were lower than the previous week, mostly due to the first decrease seen in Truck/SUV segments. Supply remains low with extremely high demand on both sides of the boarder. Upstream channels continue to tap supply before it can be available to wholesale markets.

Conversion rates decreased this week. Some observed sell rates were as high as 58% this week. We are seeing more sellers setting floors higher than the current market will bear, which has been contributing to lower sell rates. The U.S. market exchange rate was lower than the previous week and remains favorable for exportation when price and demand are taken into consideration. Arbitrage opportunities have continued to bring US buyers, causing a steady flow of vehicles south across the border.

Canadian Black Book’s Market Insights

Economics & Government
• Bank of Canada forecast a strong consumption-led growth in the 2nd half of 2021 as vaccinations progress further and restrictions ease.
• Inflation will likely remain near the top of our 1-3 % inflation-control target range through the summer. This largely reflects base-year effects combined with much stronger gasoline prices.
• The Canadian dollar value fell slightly to the $0.81 range this past week. The momentum of the strengthening Canadian dollar has stalled out for now with some weakness in commodity prices last week.

U.S. Market

All U.S. Car and Truck segments reported increases this past week with the overall market gaining +0.7%, which is lower than last week’s +0.95%.
The Car segment gains of +0.75% are lower than the week prior’s +0.97%:
• The Compact Car segment, the only segment to increase over 1% this week, had the largest weekly gain at +1.29%. The Compact Car segment has had greater gains than the overall car segment average for 14-consecutive weeks.
• The Sub-Compact Car segment had the lowest change-rate at +0.12%. Similar to Car segments, the Truck segment gains were +0.68%, lower than last week’s +0.94%:
• Only two of the thirteen segments gained more than +1%. Full-size Crossover/SUV segment had the highest gains for the week at 1.17%, followed closely by Full-size Vans at +1.08%.
• The Small Pickup segment weekly rate has decreased for seven consecutive weeks, resulting in its first decline in 21-weeks