Week five of market downturn for used vehicle sales

Though still near record high prices, the Canadian wholesale market for used cars continued its slight decline overall for the fifth week in a row. The week ending on April 29 was down again very slightly, -0.04% compared to the previous week’s -0.23%, according to Canadian Black Book. The 2017-2019 average for that week was -0.15%.

The bright point was the car segment, which was up overall by 0.18% compared to being down -0.10% last week. The truck/SUV segment experienced a decline of -0.26% for the week, compared to the previous -0.36%. In the U.S., overall, car and truck segments (-0.03%) decreased for an eighteenth consecutive week.

“The average listing price for used vehicles remains at historic highs,” says the CBB report. “However prices remain stable week-over-week, and the 14-day moving average remains slightly below $37,000.”

Seven of the nine car segments increased last week, led by premium sporty cars (+0.72%) and sporty cars going up just 0.57%. The only two segments still declining were near luxury cars (-0.30%) and luxury cars (-0.17%).

For trucks/SUVs, sub-compact crossovers were up 0.18% and compact and full size vans were very slightly up—0.02% and 0.05% respectively, as were full size pickups (+0.05%). Mid-size luxury crossover/SUVs experienced the largest price declines for the week (-0.67%), followed by full-size luxury crossover/SUV (-0.47%) and full-size crossover/SUV (-0.47%).

Supply remains low, while demand continues to soften on both sides of the border. The analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.

In other news, real GDP rose in every province except for Saskatchewan in 2021. This reflects the many sectors of the Canadian economy that continue to reemerge from the significant retraction caused by the pandemic. Consumer confidence is marginally positive.

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