The Canadian used wholesale auto market continued its slow and slight slump, while remaining near record high valuations. This week is down -0.30%, the 2017-2019 average was -0.25%, according to Canadian Black Book. The Canadian wholesale market for used cars declined, down -0.27%, and trucks were up slightly from last week at -0.32%. The overall volume-weighted used vehicle segment continues on a relatively flat trajectory, down overall by -0.30% compared to being down -0.29% last week.
This week again, three segments of the car market made very slight gains, with subcompact cars up the most at 0.09%, with mid size cars up 0.07%. Prestige luxury cars were up at 0.04%. Sporty cars were down the most, at -0.83%, followed by premium sporty cars, down -0.47%.
For trucks/SUVs, there were no segments with price increases. Full size compact luxury crossovers/SUVs declined the most, down a full -0.57%, followed by small pickups, which were down -0.55% for the week and compact luxury crossovers/SUVs, down -0.49%.
The average listing price for used vehicles decreased slightly week-over-week, as the 14-day moving average remains stable at roughly $37,350. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots. The US market exchange rate remains favourable for exportation, leading to a continuous stream of vehicles south across the border. “Supply remains low while demand is high on both sides of the border. Upstream channels continue to tap supply before it can be made available at physical auctions.”
Canada recorded a government budget surplus of CAD 3.9 billion in July of 2022, compared to a deficit of CAD 10.9 billion in the corresponding month of the previous year. Revenues increased by CAD 5.9 billion, or 20 per cent, reflecting broad-based improvement across revenue streams. At the same time, program expenses excluding net actuarial losses were down CAD 1.8 billion, or 4.8%, largely reflecting lower transfers to individuals and businesses, offset in part by higher transfers to other levels of government.
Canada’s annual inflation rate slowed to 7% in August of 2022, from 7.6% in July and below market estimates of 7.3%. Excluding gasoline, consumer prices rose by 6.3%, easing from the 6.6% in the prior month. On a monthly basis, consumer prices fell 0.3%, the first decrease since December 2021 and the steepest since the start of the pandemic in April 2020.