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CBB: wholesale prices up, sell rates strong

Used vehicle wholesale prices in Canada are up an overall 0.32% for the week ending June 4, 2021 compared to a 0.20% increase last week, according to Canadian Black Book.

“The Canadian wholesale market strengthened further this week,” said CBB. “The increases seen this week were slightly higher than the previous week but lower than ten weeks prior. This continues the trend seen over the last four weeks.”

In its weekly auto market update, CBB said prices for the overall car segment increased by 0.16% this week, the same as the previous week, and trucks/SUVs are up 0.48%, compared to only 0.24% last week. 

Most of the car segment categories showed a weekly increase, with mid-size cars up 0.38% and leading the overall segment. Premium sports cars increased 0.35%, sports cars were up 0.33%, and full-size cars increased 0.31%.

On the downside, the compact car segment dropped 0.39% and had the weakest performance out of the car segments, followed by the near-luxury car segment (down 0.07%). These were the only two segments with overall declines.

As for the truck/SUV side of the market, full-size vans led all segments with a weekly increase of 1.45%, followed by compact vans (up 1.15%), and small pickups (up 0.89%). However, sub-compact luxury crossovers declined 0.63%, and lagged behind the rest of the truck/SUV segments, with four consecutive weeks of negative price development.

Considering the overall wholesale picture, CBB said supply remains low with very high demand on both sides of the border. Upstream channels also continue to tap supply before it can be available to wholesale markets. 

“Sell rates are still strong this week as buyers continue to demand inventory. Some observed sell rates were as high as 70% this week,” 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.”

CBB said they are seeing more sellers setting floors higher than the current market can handle, contributing to lower-than-previous week sell rates. 

The full report can be found here.

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