Used car prices at historical high while market languishes

Prices for used cars hit another historical high this week, according to Canadian Black Book. However, the Canadian wholesale market for used cars continued its flat trajectory with another very slight decline overall for the seventh straight week. The week ending on May 13 was down again very slightly, -0.03% compared to the previous week’s -0.23%, according to the report. The 2017-2019 average for that week was -0.09%. Car segments slightly increased, up 0.06% from last week.

The car segment continues to slowly rise,  which was up overall by 0.06% compared to being down 0.13% last week. The truck/SUV continued a slight decline of -0.12% for the week, compared to the previous -0.32%. In the U.S., overall, car and truck segments (-0.03%) decreased for the twentieth consecutive week.

“The Canadian wholesale market has continued to remain stable overall with improvements in sales prices last week compared to the week prior. ,” says the CBB report. “Supply remains low while demand continues to soften on both sides of the border. Upstream channels continue to tap supply before it can be made available at physical auctions. .”

Five of the nine car segments increased last week, led by premium sporty cars (+0.48%) and sporty cars going up just 0.25%. Mid-size, full-size and Near luxury cars were all down (-0.37%, 0.38% and -0.32 respectively).

For trucks/SUVs, the only gainers were small pickups, up 0.42%, and full-sized pickups, which were up 0.04%. Sub-compact luxury crossovers were down the most at -0.39% followed by compact luxury crossover/SUVs which were down -0.35%, and full-size luxury crossovers, down -0.30%.

The average listing price for used vehicles hit another historic high, as prices have increased week-over-week, and the 14-day moving average remains slightly below $38,000. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.

In other news, gas prices also reached historic highs, jumping 7.8 cents per litre, and consumer confidence is at a 17 month low, reflecting concerns about inflation, real estate values and the future strength of the Canadian economy.

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