Used vehicle prices down 10% this week

Overall prices for used vehicles in the Canadian wholesale market declined for the week ending on March 22 by 10% compared to only 0.04% the prior week, based on Canadian Black Book’s latest auto market update.

The overall car segment was down 0.10% compared to -0.19% the prior week (the 2017-2019 average being -0.12%), while the overall truck/SUV segment saw prices decline 0.09% compared to +0.11% the prior week (the 2017-2019 average being -0.13%). In the United States, the overall car and truck/SUV segments experienced a decline of 0.51%, compared to the prior week’s decrease of 0.64%.

“The Canadian wholesale market has continued to remain stable overall but is dipping into the negative territory,” said CBB. “Newer vehicles tend to be outperforming vehicles aged three years and older. Supply remains low while demand continues to weaken on both sides of the border.”

For the car segments, sports cars experienced the largest price increase for the week (+0.35%), followed by prestige luxury cars (+0.11%). On the down side, the full-size car segment saw the largest price decline for the third consecutive week—down 1.84%, followed by mid-size cars (-0.89%) and sub-compact cars (-0.17%).

As for trucks/SUVs, full-size vans saw the largest price increase for the fifth consecutive week, this time at +0.88%, followed by compact vans (+0.31%) and full-size pickups (+0.13%). At the same time, sub-compact luxury crossovers experienced the largest price declines for the week (-1.26%), followed by mid-size luxury crossovers/SUVs (-0.61%) and full-size luxury crossovers/SUVs (-0.35%).

The average listing price for used vehicles, as per the 14-day moving average,  now sits slightly below $35,900. The analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.

In other news, retail sales jumped 3.2% to $58.9 billion in January, thanks to higher sales at motor vehicle and parts dealers (+5.3%) and sales at new car dealers (+5.5%) in January, compared to December 2021.

Gas prices continue to rise to historic highs, with the national volume weighted average for Canada hovering around $1.834/L, as of March 15. And the Canadian dollar is up slightly against the USD and finished the week off at $0.79.

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