The Canadian used vehicle wholesale market remains “red-hot,” as prices continue to rise—now for the 10th consecutive week, according to Canadian Black Book.
In its latest weekly auto market update, CBB said all vehicle segments experienced price increases for the week, with lack of inventory as the main driver for these increases. Both new and used vehicle inventory continues to decline.
“The Canadian wholesale market continues to increase yet again. This past week, all segments reported increasing values,” said CBB, adding that “Supply remains low while demand continues to be strong on both sides of the border.”
Overall, prices increased 0.64% for the week ending on October 19, with car segments up 0.68% and truck/SUV segments up 0.59%.
For the car segment, and for the second consecutive week, all nine categories saw prices increase, with only two (full-size cars up 0.20% and sports cars up 0.47%) managing price increases of less than 0.50%. The mid-size car category experienced the largest price increase for the week (+1.03%), followed by prestige luxury cars (+0.85%), luxury cars (+0.75%), and near luxury cars (+0.74%).
For trucks/SUVs, all 13 categories managed increases for the week, with full-size crossover/SUVs up 1.68%, followed by subcompact crossovers (+0.87%) and minivans (+0.85%). Compact luxury crossovers (+0.32%) had the smallest increase for the week.
“The average listing price for used vehicles continues to hit historic highs week-over-week, as the 14-day moving average now sits above $29,500,” said CBB, adding that the analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.
The company also said conversion rates remain strong. “Rates were observed into the 85% range on some lanes last week, with the few low kilometre, good condition units garnering high levels of bidding activity and premium pricing,” said CBB.
The full report can be viewed here.
