Wholesale Prices, Week Ending April 8th

April 12 2022
CBB

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The Canadian used wholesale market saw overall prices decline slightly for the 2nd straight week (-0.04%). The Car segment saw prices rise slightly (+0.11%), while the Truck/SUV segment saw prices decline (-0.18%) for the week. Premium Sporty Car saw the largest price increase for the week (+0.46%), followed by Sub-Compact Car (+0.45%) and Prestige Luxury Car (+0.41%). Mid-Size Car saw the largest price decrease for the week (-0.85%), followed by Sub-Compact Luxury Crossover (-0.65%) and Full-Size Crossover/SUV (-0.60%).

  This Week Last Week 2017-2019
Average (Same Week)
Car
segments
+0.11% +0.10% -0.14%
Truck
& SUV segments
-0.18% -0.13% -0.11%
Market -0.04% -0.02% -0.13%

Car Segments

• Overall, the volume-weighted wholesale used Car prices increased by +0.11% for the week.
• The Premium Sporty Car segment had the largest price increase (+0.46%), followed by Sub-Compact Car (+0.45%) and Prestige Luxury Car (+0.41%).
• The Mid-Size Car segment saw the largest prices drops for the week, down -0.85% followed by Full-Size (-0.14%) and Luxury Car Segment (-0.08%) for the week.

Truck Segments

• Overall, volume-weighted wholesale used Truck/SUV prices decreased for the 2nd straight week (-0.18%).
• The Minivan segment and Sub-Compact Crossover were the only 2 Truck/SUV segments to see prices increase, +0.20% and +0.01% respectively for the week.
• Sub-Compact Luxury Crossover/SUV segment saw the largest prices declines for the week (-0.65%), followed by Full-Size Crossover/SUV (-0.60%) and Compact Van (-0.55%).

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 slightly below $37,000. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.

Wholesale

The Canadian wholesale market has continued to remain stable overall but is remains slightly into the negative territory. Newer vehicles tend to be outperforming vehicles aged three years and older.

Supply remains low while demand continues to soften on both sides of the border. Upstream channels continue to tap supply before it can be made available at physical auctions. Conversion rates increased this past week, as rates were observed into the 45% 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.

Canadian Black Book’s Market Insights

Economics & Government

• The unemployment rate fell 0.2 percentage points to 5.3% in March, the lowest rate on record since comparable data became available in 1976.
• Employment rose in both the service-producing (+0.3%) and the goods-producing (+0.8%) sectors in March.
• The Canadian dollar remains steady at against the USD, finishing the week at $0.80.

Industry News

• VW’s Chief Financial Officer, Arno Antlitz, made the comments last weekend in an interview with Boersen-Zeitung this weekend, claiming that supplies of semiconductors will improve this year and in 2023, but won’t be fully remedied until the middle of the decade.
• General Motors and Honda Motor will develop a series of affordable electric vehicles based on a new global platform; the companies announced last week. The project will utilize GM’s next-generation Ultium battery technology. The tie-up is expected to produce millions of lower-priced EVs, including popular compact crossover vehicles, beginning in 2027, according to officials.
• Ford and Rivian have made Time Magazine’s list of 100 Most Influential Companies, while automaker Tesla was left completely out, causing confusion among fans of the Elon Musk’s brand.

U.S. Market

In the U.S., overall, Car and Truck segments (-0.15%) decreased for a sixteenth consecutive week; the prior week decreased by -0.15%.

Volume-weighted Car segments increased +0.12%, compared to the prior week’s decrease of -0.02%:

• Six of the nine Car segments increased last week.
• Compact (+0.45%) and Sub-Compact (+0.37%) Cars reported the largest increases last week, both increasing from the prior week’s increases of +0.30% and +0.01%, respectively.
• Premium Sporty Car reported the largest negative movement last week, with a decline of -0.13%.
• Near Luxury Car (-0.07%) and Luxury Car (-0.12%) also reported declines, but the decreases were much lower than the depreciation seen during any week this calendar year.

Volume-weighted Truck segments decreased by -0.28%; the previous week had a decrease of -0.21%:

• Four out of the thirteen Truck segments reported increases.
• Compact Crossovers increased for a second consecutive week, up +0.24% after the prior week’s increase of +0.11%.
• The Full-Size Crossover/SUV (-1.70%) segment reported the largest decline last week, most likely due to elevated gas prices.
• Despite high fuel costs, Sub-Compact Crossovers continued to decline (-0.13%) last week, which marks sixteen consecutive weeks so far.
• The Mid-Size Crossover/SUV segment’s depreciation rate sped up this past week, declining -0.47% compared to the prior week’s declines of -0.22%.