The Canadian used wholesale market continues to experience price increases, now for the ninth consecutive week, with all vehicle segments experiencing price increases for the week.
That is according to Canadian Black Book’s latest auto market update, which notes that lack of inventory continues to be the main driver for these wholesale price increases—with both new and used vehicle inventory declining. Overall for the market, prices increased 0.69% for the week, with car segments up 0.84% and truck/SUVs up 0.59%.
For cars, the full-size car segment had the largest price increase for the week (+2.26%), followed by the mid-size cars (+1.30%) and near-luxury cars (+1.20%). The premium sports car category was up 0.41%), while luxury cars increased 0.52%. Both segments experienced the least price increase week-over-week.
For the sixth straight week, all 13 truck/SUV segments managed price increases for the week. The compact crossover/SUV segment experienced the largest price increase for truck/SUV segments (+0.85%), followed by sub-compact luxury crossovers (+0.82%) and sub-compact crossovers (+0.75%).
Full-size pickups (+0.33%) and mid-compact luxury crossover/SUVs (+0.37%) experienced the smallest increases for the week.
CBB said the average listing price for used vehicles “continues to hit historic highs” week-over-week, with the 14-day moving average reaching above $29,250. The analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.
“Supply remains low while demand continues to be strong on both sides of the border. 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 85% range on some lanes last week, with the few low kilometre, good condition units garnering high levels of bidding activity.”
The full report is available here.
