The pace of weekly increases in Canadian used vehicle wholesale prices is slightly lower than in previous weeks, but the upswing continues nonetheless with the truck/SUV segments leading the market with above average week-over-week price increases, according to Canadian Black Book’s latest market update.
The overall segment experienced an increase of 0.46% this week (for the week ending on April 23), which is lower than the 0.53% increase from last week but still up. To compare, the 2017-2019 average for the same week was -0.27%. The car segment was also up this week, by 0.34% compared to 0.37% last week, and compared to the 2017-2019 average increase of 0.4% during the same weekly period.
The overall market was up 0.40% this week, compared to 0.45% last week.
“The Canadian wholesale market strengthened further this week with overall truck/SUV and car values in positive week-over-week territory,” said CBB. “While still in positive territory, the increases seen this week were less than the previous week. Supply remains low with demand extremely high on both sides of the border. Upstream channels continue to tap supply before it can be available to wholesale markets.”
All truck/SUV segments experienced positive weekly changes, with minivans leading the overall segments and the market thanks to a weekly increase of 1.21%, followed by mid-size crossover/SUVs (+0.81%), and full-size pickups (+0.70%). The sub-compact luxury crossover category was also up (+0.10%), as was full-size luxury crossovers/SUVs group (+0.10%) — both of which had the weakest performances this week from the overall segment.
Most car segments managed a weekly increase too, with the premium sports car category leading the way with an increase of 0.85%. This was followed by mid-size cars (+0.72%), subcompact cars (+0.66%), full-size cars (+0.60%), and compact cars (+0.54%). All experienced performances with above average increases.
Declines in wholesale prices were seen in the near luxury car (-0.11%) and luxury car (-0.04%) categories, and were the only car segments with a weekly decline.
CBB said used vehicle average listing prices continued its upward swing this past week, with the14-day moving average now at approximately $25,340. “The 28-day moving average also continued to see strong increases, closely mirroring the daily and 14-day trends, which have been experiencing a strong upswing in prices since late February,” said CBB.
Its analysis is based on approximately 130,000 vehicles listed for sale on Canadian dealership lots.
CBB said active listing volume also continued to demonstrate positive movement this past week, with the 14-day moving average now at around 132,500 — up from the previous week’s approximately 128,500 figure.
“Active listing volume actually began to show positive movement in recent weeks when looking at the daily and weekly trends, and we are now seeing the trend continuing,” said CBB.
On the topic of auctions, CBB said sell rates are strong this week as buyers continue to demand inventory and are open to adjusting to sellers’ expectations — especially where trucks are concerned.
“Some observed sell rates were as high as 75% this week — low supply and high demand keeps any saleable vehicle from returning to the auction block a second time,” said CBB. “This high demand at auctions is expected to continue this week as the lack of new vehicle supply continues to increase demand for used vehicles.”
You can read the full report here.