CBB: used car prices up, 3 car segments slightly down

The Canadian used wholesale market continues to be “red-hot,” according to Canadian Black Book, which notes that prices increased now for the 17th straight week across 19 of the 22 segments for the week ending on December 7.

Overall, prices increased 0.74% for the week—up from last week’s increases. The car category was up 0.34% and trucks/SUVs were up 1.13%.

“The Canadian wholesale market continues to increase yet again. This past week, almost all segments reported increasing values,” said CBB. “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.”

Specific to cars, the sub-compact car segment experienced the largest price increase for the week (+2.22%), followed by compact cars (+1.63%) and full-size cars (+1.51%). However, luxury cars were down 0.22%, along with premium sports cars (-0.12%) and sports cars (-0.06%)—the only segments to see prices slightly decrease for the week.

As for trucks/SUVs, the compact crossover/SUV segment experienced the largest price increase at 2.06%, followed by sub-compact crossovers (+1.83%) and full-size vans (+1.42%). And still up (but slightly less) is the sub-compact luxury crossover segment (+0.43%), the full-size pickup segment (+0.75%), and full-size crossovers/SUVs (+0.79%).

“The average listing price for used vehicles continues to hit historic highs week-over-week, as the 14-day moving average now sits above $31,000,” said CBB, adding that the analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.

Also worth noting: conversion rates remain strong (into the 60% range), the unemployment rate dropped 0.7 percentage points to 6.0% in November (the largest decline since March 2021), and the Canadian dollar is up slightly to finish the week at $0.79.

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