Canadian Black Book (CBB) released data for the first week of February, which showed that while average wholesale prices of used vehicles across Canada continued to soften, the decline in prices has slowed. Although continuing to decline, the prices were better than 2017-2019 seasonal norms for the overall market and car and truck segments.
CBB notes that there was improvement compared to the same week last year, and believes this could be a sign that dealerships are beginning to stock up on spring inventory.
According to CBB, the sub-compact and luxury vehicle car segments saw the largest declines (-0.50% and -0.46% respectively), while sports cars led the increases with an increase of +0.28%. Within the truck segment, full-size luxury crossover/SUVs saw the largest increase (+0.29%), while the most significant decline came from full-size pickups (-0.49%).
CBB reports that listing prices dropped slightly, ending the week just below $25,000. Although there is still uncertainty in the market due to COVID-19 restrictions, seasonal trends point to prices continuing to rise.
While these restrictions could pose challenges and uncertainty for the spring selling season, CBB predicted that the chip shortage on new vehicle inventory will likely push used vehicle demand up, which could translate to stronger short-term retail prices — especially considering that there remains a general shortage of used inventory across the market.
And although active listing volumes have risen since the dip last fall and are now above 130,000 units, “The CBB Listing Volume Index continues to show that the market is at a higher level compared to this time in 2020, yet far below the stock levels available in 2019,” said CBB in its February 9 report.