The Canadian used vehicle wholesale market continues to do well in terms of overall weekly performance, with an increase of 0.51% for the week ending on May 18 — up from last week’s 0.46%, according to Canadian Black Book.
In its weekly automotive market update, CBB said the increases seen in both the car and the truck/SUV segments were well above average week-over-week price increases.
“Cars led the market again with a strong up-tick in prices (+0.55%) which were stronger weekly increases than the prior week; similarly, truck/SUVs had another slight momentum up-tick in weekly increases at +0.47%,” said CBB in its report.
Most car segments managed a weekly increase, with full-size cars (+1.25%) leading the overall category, followed by premium sporty cars (+0.92%) and prestige luxury cars (+0.69%).
However, the sub-compact car segment had the weakest performance with -0.10%, and it was the only car segment with a weekly decline in prices. Compact cars also had a relatively slow week with an increase of 0.11%, and trailed behind the other categories (with the exception of subcompact cars).
As for trucks/SUVs, most segments saw positive weekly changes, with full-size crossover/SUVs leading the way thanks to a weekly increase of 1.60%. This was followed by minivans (+0.92%), full-size pickups (+0.62%), and small pickups (+0.61%).
Subcompact crossovers were down -0.37%, and had the weakest performance this week out of all segments. It was also the only truck/SUV segment showing a decline in prices.
“While still in positive territory, the increases seen this week were similar to the previous week,” said CBB. “Supply remains low with extremely high demand on both sides of the border. Upstream channels continue to tap supply before it can be available to wholesale markets.”
Sell rates are still strong as buyers continue to demand inventory. Some rates were as high as 85% this week; CBB said low supply and high demand “keeps any saleable vehicle from returning to the auction block a second time.”
CBB expects the high demand at auction to continue this week, as the lack of new vehicle supply continues to increase demand for used vehicles.