Photo Courtesy of Canadian Black Book
Canadian Black Book has released its weekly automotive market update, reporting that Canadian used wholesale market prices stabilized this week with overall used wholesale values declining –0.09% from the week prior, which makes for less than half of the weekly decline of 0.21% during the same period in previous years.
Used car prices softened slightly with a -0.19% decrease, making this the first back-to-back weekly price decline since February. In terms of segments, Sporty Cars saw the biggest drop in prices at –1.20%, while Premium Sporty Cars (+0.48%) and Prestige Luxury Cars (+0.32%) were the only segments to have price increases from the week prior.
The Truck segment has remained flat for the week, with prices stabilizing after two consecutive weeks of declining values. Full-Size Vans saw the biggest weekly price increase at +0.52%, while Mid-Size Crossover/SUV saw the biggest decrease at –0.31%.
Used vehicles’ average listing price continued to increase this week, as the 14-day moving average has surpassed $27,250, which is up from last week’s record high. The 14-day moving average for volume, however, has dropped to approximately 137,800, steadying the used active listing volume. April’s positive movement seems to be softening as all provinces begin to reopen across the nation.
Although Canadian Black Book Listing Volume Index remained relatively flat for the week at 1.073, it continues to show that overall listing volume remains significantly higher than the same time last year.
The national economy is projected to improve with the Bank of Canada anticipating a GDP growth of around 6% in 2021, 4.5% in 2022 and 3% in 2023. The recovery is meant to be led by consumption as households return to more typical spending behaviour, and housing market activity eases back to previous patterns.
Also of note, due to low demand Ford Motor Company has announced the cancellation of the F-150 diesel option, and Rivian has delayed the launch of its first pickup until September, with the production of their debut model – the R1T – suffering from supply-chain issues. The EU plans to phase out internal-combustion cars by 2035, though the proposed plan has been met with opposition.
