All 22 segments of the Canadian used vehicle wholesale market experienced price increases for the week ending on September 28, thanks largely to the lack of new and used vehicle inventory—which continues to decline, according to Canadian Black Book.
In its latest weekly automotive market report, CBB said all segments reported increasing values this past week, and that supply remains low while demand continues to be strong on both sides of the border.
Overall prices increased 0.47% for the week, with car segments up 0.50% and truck/SUV segments up 0.45%.
For the car category, the compact car segment had the largest price increase for the week (up 1.10%), followed by the near-luxury car (+0.83%) and full-size car (+0.79%) segments. Sports cars were up 0.03%, luxury cars increased 0.24%, and premium sports cars jumped 0.34%. These last three experienced lower-than-average increases for the week.
For trucks/SUVs, all 13 segments managed prices increase for the week—and also for the past four consecutive weeks. The full-size crossover/SUV segment had the largest price increase for truck/SUV segments at +1.17%. And full-size luxury crossover/SUVs and compact vans managed more modest increases (up 0.05% and 0.12%, respectively).
“The average listing price for used vehicles continues to hit historic highs week-over-week, as the 14-day moving average now sits just over $29,000,” said CBB. “Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.”
CBB said its Listing Volume Index continues to decline, with the index currently at 0.902—the lowest point this calendar year. Vehicle listing volume declined significantly over the past 15 weeks and is now only slightly higher than the same period last year.
“Upstream channels continue to tap supply before it can be available at physical auctions,” said CBB. “Conversion rates remained strong this past week. Rates were observed into the 80% range on some lanes last week, with the few low kilometre, good condition units garnering high levels of bidding activity.”
As for the quality of vehicles at auction, CBB said they remain slightly below average as the supply of better-quality vehicles continues to be bought upstream.
Read the full report.
