Canadian wholesale prices continue to rise while prices in the U.S. decline, according to Canadian Black Book’s latest COVID-19 update for September 15.
On the Canadian side, wholesale used vehicle prices strengthened, again, this past week with cars up 0.05% ($11) and trucks 0.19% ($42) — smaller increases than in recent weeks, but still increases.
The near luxury car segment was up the most, by 0.49% or $96, followed by the luxury car segment with 0.12% (+$32), prestige luxury car with 0.09% (+$42), the full-size car segment with 0.09% (+$13), and finally the mid-size car category was up 0.06% or $6.
The sporty car segment was down the most, by 0.43% ($82), subcompact cars were down 0.12% ($9), as was the compact car category, by 0.08% ($8).
Most segments of the truck category were up, notably the full-size crossover/SUV (0.54%), sub-compact luxury crossover (0.52%), subcompact crossover (0.50%), and minivan (0.50%), full-size pickup (0.42%). The small pickup segment was up 0.23%.
The full-size luxury crossover/SUV, compact luxury crossover/SUV, and full-size van segments were down.
On the U.S. side, wholesale used vehicle prices this past week for both trucks and cars declined in value. Car wholesale prices fell by 0.26% and trucks fell by 0.07%.
“The common theme in the market continues to be all about product shortages and generally much tighter inventory than usual for this time of year.” said CBB. “The shortage of stock, as well as a strong demand for used vehicles, is helping to keep prices elevated.”
CBB said the normal fluctuations of seasonal demand have been significantly disrupted due to COVID-19, making the job of determining appropriate stock levels and product mix much more challenging for dealers.
Used vehicle supply levels remain tight, while demand for used vehicles remains strong within the export and domestic sales arena. The average days to turn for used car inventory ended the week at a 14-day moving average of 53 days, lower than usual.
Dealers exporting vehicles may note that the Canadian dollar has been trending downward this month, with a loss in value of one per cent so far in September.
“The dollar remains a key factor in determining vehicle value trends in Canada due to the large number of units exported from Canada to the U.S. each year,” said CBB. “A weaker dollar is helpful to drive stronger U.S. demand for Canadian used cars.”
As for new vehicles, the strong rebound in sales for August and September has led to growing concern in the market that there may be shortages for new vehicles, due in part to OEM production interruptions and order scale-backs that aim to match expected softer demand.
For the full CBB report, click here.
