CBB Weekly Automotive Market Update 8/17/2021

August 17 2021
CBB

Wholesale Prices, Week Ending August 13th

The Canadian used wholesale market continues to remain relatively flat, as buyers continue to be cautious of inflated prices and low inventory levels. Wholesale values in the Truck/SUV segments increased modestly (+0.11%), while the Car segment declined slightly (-0.07%). Commercial vehicles saw the largest price increases, as both Compact and Full-size Vans increased by +0.39%. In the Car segment, Mid-Size Cars had the biggest increase, up +0.52% vs last week.

  This Week Last Week 2017-2019
Average (Same Week)
Car
segments
-0.07% -0.07% -0.14%
Truck
& SUV segments
+0.11% -0.06% -0.27%
Market +0.02% -0.07% -0.20%

Car Segments

• Overall, volume-weighted wholesale used car prices remained relatively flat for the week (-0.07%).
• Mid-Size Cars saw the largest increase (+0.52%) followed by Compact Cars (+0.11%) and Sporty Cars (+0.10%).
• Near Luxury Car (-0.28%) prices declined the most this week, followed closely by Luxury Cars (-0.27%), and Prestige Luxury Cars (-0.15%).

Truck Segments

• Overall, the volume-weighted Truck segment had modest increases (+0.11%) for the week
• Commercial vehicles saw the largest price increases for the week, as both Compact and Full-Size Van increased +0.39%, followed by Mid-size Crossover/SUVs (+0.35%) and Small Pickups (+0.31%).
• Compact Luxury Crossover/SUV (-0.24%) prices declined the most this week, followed by Full-Size Crossover/SUVs (-0.22%) and Sub-Compact Luxury Crossover/SUVs (-0.14%).

Used Retail Prices & Listing Volumes

The average listing price for used vehicles hit another historic high this week, as the 14-day moving average continues its upward trend surpassing $27,800. Analysis is based on approximately 140,000 vehicles listed for sale on Canadian dealer lots The number of used active listings continues to decline, as the 14-day moving average has now hit its lowest level since mid-April. Used active listings now sit under 129,000 vehicles. Days-to-turn has slightly declined to 49 days (vs. 50 days last week), as the positive movement in early April now seems to be softening.

Volume

Used Retail

For the first time since mid-April the CBB Listing Volume Index sits below the January starting point, currently, the index sits at 0.999. Used vehicle listing volume still remains significantly higher than this time last year.

Wholesale

The Canadian wholesale market continues to stabilize, with only a small increase overall -- the first increase in six weeks. Supply remains low with demand slightly picking up on both sides of the boarder. Upstream channels continue to tap supply before it can be available to wholesale markets. Conversion rates remained inconsistent this week, as some observed sell rates were as high as 60% while others were as low as 27%. More sellers are setting floors higher than the current market will bear, which has been contributing to lower sell rates and values. 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 favorable for exportation when price and demand are taken into consideration. Some U.S. buyers may be hesitant due to cooling markets and the time lag between purchasing a vehicle in Canada and selling it in the U.S.

Canadian Black Book’s Market Insights

Economics & Government

• Prime Minister Trudeau calls for a federal election -- the date has been set for September 20th.
• The Canadian dollar value is helped by rebounding Oil prices and continues to hold firm.
• Manufacturing sales rose in June; this was predominantly driven by production at auto assembly plants.

Industry News

• Ram recalled over 200,000 Ram 1500 Classic, 2500 and 3500 pickups due to airbags. The issue affects MY2015 - MY2020 Ram 2500 and Ram 3500 pickups along with some Ram Classic 1500 pickups, also MY2015 - MY2020.
• In a report by the Detroit Free Press, Ford Motor Co. asked the US Patent and Trademark Office (USPTO) to rescind General Motors' trademark rights on "Cruise" and "Super Cruise.”
• A train derailed in Missouri on August 2, destroying hundreds of new MY2021 Ford F-150 pickup trucks and Transit vans.

U.S. Market

In the U.S., overall Car and Truck segments (-0.52%) decreased for the seventh week in a row. For reference, last week was -0.62%.

Volume-weighted Car segments declined -0.58%, lower than last week’s decline of -0.78%:
• Sub-Compact Cars (-0.91%) declined again for the second week in a row; these declines come after a twenty-five-week streak of increases.
• Sporty Cars had the largest declines at -1.19%, while the more expensive Premium Sporty Car segment reported a minimal decline of -0.08%.
Volume-weighted Truck segments declined -0.48%, compared to the previous week’s -0.54%:
• All three van segments had gains this past week, with Minivans (+0.49%) and Full-Size Vans (+0.51%) reporting the largest gains.
• Mid-Size Crossovers experienced the largest declines in the Truck segments, with a depreciation of -0.86%.