Average wholesale used vehicle prices in Canada were nearly flat this past week with declines much better than seasonal norm data from 2017-2019 for the overall market, according to Canadian Black Book’s latest Auto Market update.
CBB said this past week’s price decline is “also much improved from the same week last year, which we continue to view as an early sign that dealers are beginning to stock up on product for the spring.”
On segments, used cars noted a weekly change of -0.09% from last week, when the change was -0.08%. The 2017-2019 average for the same week period was -0.39%.
In the car segment, the near-luxury category managed the greatest increase last week with a 0.16% gain, while premium sports cars noted a 0.04% increase. Compact cars noted an increase of 0.02%, and luxury car segments experienced a marginal 0.02% increase as well.
The sub-compact car segment was down 0.66% this week, followed by the mid-size car category with -0.61% and full-size cars with – 0.33%. Prestige luxury cars were down -0.28% and sports cars declined 0.26% for the week.
For trucks and SUVs, the weekly change was 0.06% from last week, which was -0.13%. And the 2017-2019 average for the same week period was -0.30%.
The sub-compact luxury crossover category posted the largest increase for the week at 0.56%, followed by mid-size luxury crossover/SUVs with an increase of 0.20%. Compact crossover/SUVs managed the largest decline with -0.46%. Full-size vans were down -0.29%, compact vans – 0.29%, full-size pickups -0.27%, and minivans were down -0.24%.
On used vehicle retail prices and listing volumes, CBB said the latter “took another slight dip” last week. That decrease came after a strong run of increasing average retail listing prices that began last year in September.
“Although average listing prices ended the week down at around $24,950 (28-day moving average), average listing prices are still above listing prices from the same week last year,” said CBB, adding that the analysis is based on approximately 130,000 vehicles listed for sale on Canadian dealer lots.
As we head into the spring season, CBB said the seasonal trend points to prices continuing to increase.
“There is still uncertainty around the impact of current stay-at-home orders and social distance measures, and the degree to which these measures may cool the spring selling season,” said CBB. “However, Canadian Black Book continues to monitor the potential impact from the chip shortage on new vehicle inventory that will most likely continue to push used vehicle demand up, and therefore stronger retail prices in the short term.”
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