Courtesy of Candian Black Book
The Canadian Black Book (CBB) Weekly Automotive Market Update shows a decline in the Canadian used wholesale market for the fourth consecutive week, as buyers become more cautious of inflated prices and low inventory levels.
Volume-weighted wholesale used car prices declined –0.23%, with Prestige Luxury Cars seeing the biggest decline at –0.58%. The only car segment to have value increases this week were Full-Size Cars at +0.20%.
The volume-weighted Truck segment remained somewhat flat for the week, as the market showed signs of consumer caution.
For the first time since May 2020, the CBB Used Vehicle Retention Index fell, finishing the month at 124.7 points, a decline of 0.4 points from June 2021. Year-over-year the Index is up 20.3% from 103.7 points in July of 2020, while slightly down from historical highs.
Despite wholesale market declines, the average listing price for used vehicles continues its upward trend, with the 14-day moving average surpassing $27,460, now up approximately $200 from last week’s historical high.
Used active listings declined in volume for the week, with the 14-day moving average dropping to approximately 133,300 vehicles. The CBB Listing Volume Index continues to decline, sitting currently at 1.041. Despite decreasing, the index still shows overall listing volume as significantly higher than this time last year.
The Canadian wholesale market continues to cool off for the fourth consecutive week as supply remains low with demand slightly cooling on both sides of the border. The U.S. market exchange rate is similar to the previous week, and remains favorable for exportation when price and demand are considered.
U.S. automakers reinstated mask mandates at all plants effective this week, in response to the CDC’s recent COVID-19 update related to the Delta variant. Infineon reports historic inventory lows, as the German car industry is facing the worst chip supply shortage in 30 years.
