Seasonally-adjusted price index continues to climb
ADESA Canada’s Used Vehicle Price Index for August strengthened by approximately 0.6 points from July, seasonally adjusted, as actual prices turned upward.
After five consecutive months of softening, price support finally came in August. The main factor behind that support was reduced resale levels. The volume of vehicles going through auction has dropped significantly, ADESA says. Numbers are down approximately 35 percent since June, including a 10-percent drop month-over-month (MoM) for August.
Prices strengthened across most segments, according to ADESA. The greatest price increase (5 percent or $501) occurred in the compact SUV segment, followed closely by the full-size pickup and mid-size SUV segments, each posting 2-percent MoM gains. This increase supports the growing trend of
Canadian consumers’ interest in the light-truck market, which is up 12.2 percent year-over-year.
That interest also reflects the fact that many vehicles classified as trucks, particularly in the compact and mid-size SUV segments, are actually crossovers (CUVS), which are more car-like than truck-like in both their construction and their characteristics.
Despite mid-size car and minivan resale volumes dropping by 4 percent and 24 percent, respectively, their resale prices showed no sign of improvement.
This information was provided by ADESA Canada. A summary of the current OPENLANE Market Index report is posted on our website, www.canadianautodealer.ca. Search OPENLANE.
