Market Insights – 12/20/2022
Wholesale Prices, Week Ending December 17th
Overall, the Canadian used wholesale market saw prices decline once again for the week (-0.55%). Both Car and Truck/SUV segments performed similarly, with Car segment prices declining (-0.53%) and Truck/SUV segment prices declining (-0.57%) last week. All the 22 segments had values decrease for the week. Segments with the largest declines last week were Compact Van (-1.31%), followed by Sporty Car at (-1.20%).
|This Week||Last Week||2017-2019 Average (Same Week)|
|Truck & SUV segments||-0.57%||-0.44%||-0.31%|
- Overall car segments decreased last week by -0.53%.
- Same as the previous week, all segments had decreases. Those with the largest declines were Sporty Car (-1.20%), followed by Near Luxury Car (-0.74%), Mid-Size Car (-0.57%) and Compact Car (-0.55%).
- A few other segments with notable declines were Sub-Compact Car (-0.42%), Luxury Car (-0.37%) and Premium Sporty Car (-0.34%).
- Overall truck segments decreased on average by -0.57% last week.
- Segments with the largest declines last week were Compact Van (-1.31%), followed by Sub-Compact Luxury Crossover (-1.13%).
- A few other segments with notable declines were Mid-Size Crossover (-0.74%), Mid-Size Luxury Crossover (-0.71%) and Full-Size Pickup (-0.69%).
Used Retail Prices & Listing Volumes
The average listing price for used vehicles was consistent week-over-week, as the 14-day moving average was at roughly $36,600. Analysis is based on approximately 200,000 vehicles listed for sale on Canadian dealer lots.
The Canadian wholesale market decreased further last week. The overall decreases were larger than the historical average. Supply remains low with demand for more recent and clean condition vehicles on both sides of the border. Upstream channels continue to tap supply before it can be available to wholesale markets.
Conversion rates were similar to last week. Some observed sell rates were as low as 18% but most were in the 25-40% range. Last week we saw less sellers dropping floors, which has been contributing to lanes with lower sell rates.
Canadian Black Book’s Market Insights
Economics & Government
- New housing prices in Canada declined 0.2% from October to November which was the third consecutive monthly decline.
- Job vacancies fell 3.3% in the third quarter to 959,600 from 992,200 in the second quarter. The labour market remains tight with employers looking to fill 8.3% more positions then the same time last year.
- Foreign investors acquired $8.5 billion of Canadian securies in October.
- The Canadian dollar remains relatively stable closing at $0.731 this Monday.
In the U.S., overall, Car and Truck segments decreased –0.82% last week; the prior week decreased by -0.88%.
Volume-weighted Car segments decreased -0.83%, compared to the prior week’s decrease of -0.86%:
- On a volume-weighted basis, the overall Car segment decreased -0.83%. For reference, the previous week, cars decreased by -0.86%.
- All nine Car segments decreased last week, with two of the nine reporting declines greater than 1% (Prestige Luxury, -1.26%; Near Luxury, -1.15%).
- Sub-Compact Car has averaged a decline of -1.08% per week over the past six weeks.
- In sharp contrast to the Sub-Compact Car segment, that has been showing regular large declines, the Premium Sporty Car segment has averaged a weekly depreciation of -0.53% over the past six weeks.
Volume-weighted Truck segments decreased by -0.81%; the previous week had a decrease of -0.90%:
- The volume-weighted, overall Truck segment decreased -0.81%, compared with the prior week’s decline of -0.90%.
- All thirteen Truck segments reported declines last week, with five of those reporting a decline of over 1%. The Sub Compact Luxury Crossovers had the largest decline at -1.17%.
- Full-Size Pickup depreciation went back to its more normal rate at –0.50%.
- Full-Size Vans had the smallest rate of depreciation of all the segments at –0.15%.
- For reasons including high inflation and interest rates, Canadians have paused on making purchases in the new car market, affecting overall vehicle sales so much that it is doubtful we will surpass 1.5 million units this year; a number we have not been under in more than a decade.
- Hyundai is leading the way for federal EV rebates through the last 11 months as the Kona EV and Ioniq 5 carry the brand to 12,166 total rebates attained; powering through the next closest competitor, Tesla, as deliveries slow severely up for the domestic EV brand.
- As our economy slows and we brace for a likely recession, supply chain woes are ever-present as China’s zero-COVID mandate has forced severe lockouts and shutdowns in the country paired with rising commodity prices as Russia’s invasion of Ukraine sustains, adding even higher pressure on supply and the North American economic state as issues are certain to continue.
- GM recalls over 85,000 Canadian vehicles for a daytime running light issue while Stellantis recalls 1.4 million Ram pickup trucks worldwide (120,000 in Canada) over a tailgate latch issue.
- Automotive News Canada’s inaugural Diversity Champions celebrates our very own, Yolanda Biswah, along with 7 other industry leaders who are committed to improving diversity, equity and inclusion at their own organizations or throughout the wider sector.