Canadian used vehicle wholesale prices flattened this week, with a modest 0.08% increase thanks in part to the premium sports segment, which helped used cars outperform the overall market, according to Canadian Black Book’s latest weekly report.
The car segment increased 0.26%, which was slightly lower than last week’s increase of 0.34%. And the truck/SUV segment decreased 0.10%, although prices for trucks and SUVs are still historically high.
“The increases seen this week were lower than the previous week, mostly due to the first decrease seen in truck/SUV segments,” said CBB in its report. “Supply remains low with extremely high demand on both sides of the border.”
As mentioned, the majority of the weekly price increase was driven by the premium sports car segments, up 1.38% from the prior week. Sports cars increased 0.30%, while full-size cars were up 0.16% and prestige luxury cars increased 0.06%.
However, more than half of the car segment showed decreases compared to last week’s report, with compact cars down 0.45%—the weakest performance in the segment, followed by luxury cars (-0.22%) and mid-size cars (-0.10%).
As for the truck segment, weekly values decreased for the first decline since February 12, 2021. The decline in price is due to a lower sales rate for SUVs, with sub-compact luxury crossovers seeing the biggest drop (-1.00%), followed by mid-size luxury crossover/SUVs (-0.54%), and then full-size luxury crossover/SUVs (-0.45%).
The compact van and small pickup segments led the overall truck/SUV category with increases of 1.00% and 0.67%, respectfully.
Used vehicle average listing prices are still on an upward trend when considering both the 14-day moving average (now at approximately $26,700) and the 28-day moving average. The analysis is based on approximately 140,000 vehicles listed for sale on Canadian dealer lots.
On wholesale, CBB said conversion rates decreased this week with some people observing sell rates as high as 58% this week.
“We are seeing more sellers setting floors higher than the current market will bear, which has been contributing to lower sell rates,” said CBB. “The U.S. market exchange rate was lower than the previous week and remains favourable for exportation when price and demand are taken into consideration. Arbitrage opportunities have continued to bring U.S. buyers, causing a steady flow of vehicles south across the border.”
You can view the full report here.