Cars make slim gains this week while truck prices continue decrease

The wholesale market as a whole was at the same level as the 2017-2019 average at -.012%, according to Canadian Black Book. The Canadian wholesale market for used cars was up 0.04%, outperforming trucks and SUVs for the 11th straight week.

The overall volume-weighted used car segment continues on an even path, up overall by -0.04% compared to being down 0.07% last week. Cars outperformed the 2017-2019 average (-).12%) quite a bit. The truck/SUV continued on a downhill path of -0.28% for the week, compared to the previous -0.12%. 

“Overall, the Canadian used wholesale market saw prices slightly decline, for the 10th straight week, the Car segment outperformed the SUV/Truck segment, as rising interest rates and high gas prices have consumers looking for smaller, more fuel-efficient vehicles,”  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.

Two of the nine car segments increased last week, with the vast majority of gains made by mid-size cars, which were up by 1.21%. Prestige luxury cars were up by 0.21% and Premium sporty cars were up marginally by 0.04%. All the rest were down, but not substantially, the lowest drop being luxury cars at -0.18%.

For trucks/SUVs, there were only two slight price increases, with sub-compact crossovers continuing positive growth from last week at 0.16%, and full size vans gaining 0.04%. Every other segment was down once again, led by compact vans (-1.10), minivans (-0.71%), full-size luxury crossover/SUVs (-0.69%), and compact luxury crossover/SUVs (-0.60%).

The average listing price for used vehicles continues to decline week over week, as the 14-day moving average drops below $37,000. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.

In other news, the national unemployment rate reached a new record low of 5.1%. Declines in consumer confidence hit lows not seen since 2020. Forward-looking views on the value of real estate dropped significantly in the past four weeks, says Bloomberg/Nanos. The Canadian dollar fell against the USD, finishing the week at $0.77.

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