The Canadian used vehicle wholesale market managed another overall weekly increase of 0.20% this past week—down from last week’s increase of 0.35%—but an increase nonetheless, according to Canadian Black Book.
In its weekly automotive market report, CBB said both the car and the truck/SUV segments were well above average week-over-week price increases, with truck/SUVs leading the market with a 0.24% increase in prices. Cars were up 0.16%, although CBB notes that there is a definite slowdown in the rate of weekly increases.
“The Canadian wholesale market strengthened further this week. While still in positive territory, the increases seen this week were slightly lower than the previous week,” said CBB in its report. “This continues the trend seen over the last four weeks. Supply remains low with extremely high demand on both sides of the border.”
CBB said upstream channels also continue to tap supply before it becomes available to wholesale markets.
So where are we at with the car segment in terms of wholesale prices? Nearly half of the car segments showed a weekly increase, with sports cars up 0.52% and leading the overall car segments. Mid-size cars managed an increase of 0.30%, prestige luxury cars were up 0.28%, and luxury cars increased 0.27%.
However, the sub-compact car category was down 0.33% and it had the weakest performance out of the car segments. This was followed by the compact car segment (-0.29%)—the only two showing declines.
As for trucks, full-size crossover/SUVs led all segments with a weekly increase of 0.87%, followed by small pickups (+0.42%), sub-compact crossovers (+0.40%), and full-size pickups (+0.36%).
On the down side, sub-compact luxury crossovers declined 0.31%, and compact crossover/SUVs were down 0.26%. Both had the weakest performance this week among Truck/SUVs, in terms of prices.
Overall however, sell rates remain strong this week as buyers continue to demand inventory.
“Some observed sell rates were as high as 75% 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. We are seeing more sellers setting floors higher than the current market will bear which has been contributing to lower then previous week sell rates.”
The U.S. market exchange rate was similar to last week’s rate, and CBB said it remains favourable for vehicle exportation—“when price and demand are taken into consideration.”
It is also worth noting that buyers exporting vehicles to our southern neighbour continue to place pressure on Canadian vehicles, and it remains a struggle for supply to keep up with the overall demand at auctions.
Read the full report here.