It has now been 15 consecutive weeks since the Canadian used vehicle wholesale market was down and decreases in both segments kicked off, according to Canadian Black Book’s latest Auto Market update.
Cars are now down 0.29% and trucks decreased 0.19% this past week. In comparison, cars were down 0.62% last week and trucks declined 0.18%. Overall, the market decreased 0.24% this week, 0.40% last week, and its 24-month average is -0.22%.
In the car segment, premium sports cars managed a 0.03% increase for the week, while the compact car category experienced a significant loss of 0.63%. Subcompact cars and mid-size cars were down 0.62% each.
As for trucks, compact vans managed a 0.30% increase, while mid-size crossovers/SUVs experienced a 0.51% loss. Minivans were down 0.47% and sub-compact crossovers were down 0.46%.
On used vehicle retained values, CBB said 2020 was an unprecedented year for used vehicle price volatility.
“Ending the year, the final conclusion was that used vehicle retained values (for 2–6- year-old vehicles) were at their highest level in the history of Canadian Black Book’s Used Vehicle Retention Index,” said CBB in its report. “Values had plateaued prior to the decline brought on by the COVID-19 pandemic. Initially, there was a spring decline of 7%, unprecedented in size, followed by a rebound of 11% to December.”
Looking ahead, dealers will need to pay attention to how market demand is impacted by the strength of the spring selling season, along with the lack of used vehicle supply. These, said CBB, will be key factors influencing wholesale prices in the first half of 2021.
Used vehicle asking prices are well above 2019 levels, even tracking higher than last year. The information is based on approximately 130,000 vehicles listed for sale on Canadian dealer lots, according to CBB.
“The price premium is a result of the shortage of used car supply in the market. There is uncertainty with respect to both demand and supply of used cars, as well as new cars,” said CBB.
Read the full report.
