Canadian wholesale used vehicle prices for September jumped 1.5%, and in doing so set a new all-time record high for the Canadian Black Book Used Vehicle Retention Index.
“After losing 7.2% of its value from February to June, the Index has bounced back in a sharp V-shaped recovery by 8.5%, setting a new high water mark of 109 Index points in the process,” said CBB in its latest COVID-19 update. “This remarkable recovery is significantly more abrupt compared to what was seen during the 2009 recession, which is also visible on the chart below.
Last week the car segment decreased in wholesale value by 0.01%, and trucks jumped 0.12%. According to CBB, the small changes from both segments illustrate a recent stabilization of market prices.
In comparison, U.S. wholesale used vehicle prices were down for both the car and truck segments during the same period, with car wholesale prices dropping 0.66% and trucks decreasing 0.19%.
The average days to turn for used car inventory in Canada ended the week with a 14-day moving average of 49 days. “This is down from the previous week and much lower than typical market conditions,” said CBB.
On the new vehicle side of the equation, DesRosiers Automotive Consultants (DAC) reported sales were down 23.7% at the end of Q3. It also estimates that sales were up 2.4% in September, year-over-year.
CBB expects product shortages for new cars to become a key issue for the Canadian market over the next 60-90 days, as OEMs shift from 2020 to 2021 model year sales. “We expect in many cases that demand may exceed the production forecast of OEMs,” said CBB.
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