Canadian Black Book observed a slight rise in wholesale values last week, due to continued low inventory for both new and used vehicles.
“The Canadian wholesale market is back to increases after five weeks of overall market declines and one week of stability,” said CBB in its weekly update. “This past week, most segments reported increasing values. Supply remains low with demand slightly picking up on both sides of the border. Upstream channels continue to tap supply before it can be available to wholesale markets.”
Wholesale values for the car and truck/SUV segments were up last week—for the period ending on August 24. Truck/SUV prices increased 0.21% for the week, while the car segment experienced a modest 0.05% price increase during the same timeframe. Minivans had the largest price increase (up 0.66%) in the truck/SUV segment, while full-size cars experienced the largest price increase (up 1.28%) in the car segment.
Luxury cars were the only segments to see prices decrease; the luxury car, prestige luxury car, and near luxury car categories saw wholesale prices drop between 0.33% and 0.19%.
Eleven out of 13 truck/SUV segments managed increased values for the week—including the minivans category. Full-size vans were also up (+0.50%), along with small pickups (+0.46%) and compact vans (+0.45%). But full-size crossover/SUVs and sub-compact luxury crossover/SUVs were down.
CBB said conversion rates improved this past week after a “few weeks” of inconsistent sales.
“Rates soared into the 80% range on some lanes last week, with the few low kilometre, good condition units garnering high levels of bidding activity,” said CBB. “In general, the quality of vehicles at auction remains somewhat below average as the supply of better-quality vehicles continues to be bought upstream.”
The U.S. market exchange rate is similar to the previous week’s recorded rate. Some buyers in the United States may be hesitant due to “cooling markets” and the time lag between buying a vehicle in Canada and then selling it across the border.
For more details, read the full report.
