Prices continue to rise for used vehicles in the Canadian wholesale market, with prices increasing for the 18th consecutive week as the holiday season approaches.
According to Canadian Black Book’s latest auto market update, which ended the week of December 14, most vehicle segments (19 of the 22) saw prices increase for the week.
“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.”
As is the new normal for now, declining inventory continues to be the main driver for the increasing prices. Overall, prices increased 0.45% for the week, with the car segments up 0.38% and truck/SUV segments up 0.52%.
All nine car segments experienced price increases for the week, with the sub-compact cars seeing the largest price increase for the week (+1.25%), followed by compact cars (+1.13%) and mid-size cars (+1.05%).
The compact van segment experienced the largest price increase for the overall trucks/SUVs category at +3.17%, followed by full-size vans (+2.98%) and sub-compact crossovers (+1.27%). On the down side, full-size crossover/SUVs saw the biggest decrease (-1.19%), followed by full-size luxury crossovers/SUVs and full-size pickups (-0.33%).
According to CBB, the average listing price for used vehicles remains high week-over-week, as the 14-day moving average now sits above $31,500. The analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.
“Conversion rates remained strong this past week. Rates were observed into the 60% range on some lanes last week, with the few low kilometre, good condition units garnering high levels of bidding activity,” said CBB.
Also worth noting: Canadian business owners expect sales to rebound to pre-pandemic levels next year, based on a survey. And the Bank of Canada will maintain the current inflation mandate. The Canadian dollar also fell slightly, finishing the week at $0.78.