Canadian car segments experienced record weekly wholesale increases this week, according to Canadian Black Book’s automotive market update ending the week of May 4, 2021.
The overall market was up 0.48% this week compared to 0.40% last week, with the overall car segment managing a significant increase of 0.54% this week from 0.34% last week. The overall truck/SUV segment was down slightly from last week (+0.42% this week versus +0.46%), however both segments performed well above historical average increases.
“The Canadian wholesale market strengthened further this week. While still in positive territory, the increases seen this week were less than the previous week,” said CBB. “Supply remains low with demand extremely high on both sides of the border. Upstream channels continue to tap supply before it can be available to wholesale markets.”
All car segments revealed a weekly increase, with premium sporty cars (+0.77%) leading the way, followed by subcompact cars (+0.71%), prestige luxury cars (+0.67%), full-size cars (+0.63%), and sporty cars (+0.58%).
The weakest performances came from the compact car category (+0.13%), luxury cars (+0.33%), and mid-size cars (+0.44%), although they still managed to have a weekly increase in prices.
All truck/SUV segments also saw positive weekly changes, with mid-size crossover/SUVs leading the overall segment and the market with the largest weekly increase at 0.80%. This was followed by small pickups (+0.71%), compact crossover/SUVs (+0.52%), and full-size crossovers/SUVs (+0.51%).
Mid-size luxury crossover/SUVs were up 0.22%, sub-compact luxury crossovers increased 0.26%, and compact luxury crossover/SUVs increased 0.28%. And full-size luxury crossovers/SUVs jumped 0.28%. All of these categories were among the weakest performances this week from the truck/SUV segment.
On sell rates, CBB said they remain strong this week due to continued buyer demand for vehicle inventory and a willingness to adjust to sellers’ expectations — especially in the truck segment.
“Some observed sell rates were as high as 85% this week — low supply and high demand keeps any saleable vehicle from returning to the auction block a second time,” said CBB. “This high demand at auctions is expected to continue this week as the lack of new vehicle supply continues to increase demand for used vehicles.”
As for used vehicle average listing prices, these continued their upward trend this past week, with the 14-day moving average now at approximately $25,525. The 28-day moving average closely mirrors the daily and 14-day trends, which CBB said have been experiencing a strong upswing in prices since late February.
The analysis is based on approximately 130,000 vehicles listed for sale on Canadian dealer lots.