Prices continue to rise in the Canadian used wholesale market, now for the 13th consecutive week, based on Canadian Black Book’s latest auto market update ending on November 5.
Most vehicle segments saw prices rise, even as dealers continue to struggle with inventory issues on the new and used vehicle front. Overall, prices increased 0.70% for the week, with car segments up 0.42% and truck/SUV segments up 0.98%.
Eight out of nine car categories experienced price increases, with only the prestige luxury car segment seeing prices decline for the week—down 0.17%. The compact car segment had the largest price increase for the week—up 1.54%, followed by the mid-size car segment (+1.48%), and the sub-compact car segment (+1.33%).
On trucks/SUVs, all categories experienced price increases. The full-size van segment had the largest price increase, up 2.68%, followed by the minivan segment (+2.19%) and the compact crossover/SUV segment (+1.37%).
Full-size crossover/SUVs (+0.26%) and full-size pickups (+0.33%) were also up, but experienced smaller increases 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 $30,500,” said CBB, adding that the analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.
CBB also said that conversion rates remain strong, with rates observed into the 75% range on some lanes last week, with the “few low kilometre, good condition units garnering high levels of bidding activity and premium pricing.”
“Many sellers are still choosing to set their floor pricing at higher levels and are willing to re-run a vehicle in the pursuit of a higher price,” 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.”
Unemployment is down for the fifth consecutive month (in September), falling 0.2 percentage points to 6.7%. The Canadian economy is weaker than anticipated, thanks to ongoing supply chain issues, and the dollar remains stable around the $0.80.