The Canadian used wholesale market was up for the third straight week, as automakers continue to tackle the issue around low inventory levels for both new and used vehicles, according to Canadian Black Book.
Wholesale values for both the car and truck/SUV segments increased, with the latter increasing 0.14% for the week, while the car segment led the way with prices increasing 0.19% for the week ending on August 27.
Near luxury cars garnered the largest price increase (+0.63%) in the car segment, while minivans experienced the largest price increase (+0.55%) in the truck/SUV segment.
On the car side, prestige luxury cars increased 0.41%, followed by sub-compact cars (+0.28%). Sports cars were down 0.14%, along with premium sports cars (-0.05%) and full-size cars (-0.05%)—the only segments to see prices decline.
For trucks/SUVs, 12 of 13 segments experienced price increases for the week. This includes the minivan category, up for the second straight week, followed by compact vans (+0.42%), and compact luxury crossover/SUVs (+0.37%).
On the downside, sub-compact crossovers were the only truck/SUV segment with declining values for the week, at -0.25%.
The average listing price for used vehicles is still in the historic highs week-over-week, as the 14-day moving average now sits just over $28,200.
“Conversion rates improved this past week after a few weeks of inconsistent sales,” said CBB in its weekly report. “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.”
In general, CBB said the quality of vehicles at auction remains slightly below average as the supply of better-quality vehicles continues to be bought upstream.
The full report is available here.