The Canadian used wholesale auto market was down -0.28%, according to Canadian Black Book. The 2017-2019 average was -0.27%. The Canadian wholesale market for used cars declined, down -0.15%, and trucks were also down more from last week at -0.39%.
Four segments of the car market made gains under ten per cent, with mid-sized cars up 0.09%, and subcompact cars up 0.06%. Full-size cars were down the most, at -0.72%, followed by luxury cars, down -0.47%, and premium sporty cars down -0.23%. Sporty cars were down -0.16%.
For trucks/SUVs, all the segments experienced decreases, with an average decrease of -0.39%. Compact vans declined the most, down -1.87%, followed by full-sized vans, which were down -1.11% for the week, full size crossover/SUVs were down -0.66% and sub-compact luxury crossover/SUVs were down -0.68%.
The average listing price for used vehicles decreased week-over-week, as the 14-day moving average declined to $36,770. 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.”
CBB industry news reports Vietnamese EV startup, VinFast, has opened its first Canadian store last week at Yorkdale Mall in Toronto, as its first EV to Canada, the VF 8, nears its earliest deliveries. GM CEO Mary Barra informed the industry last week that by 2025 their electric-vehicle program will be profitable through methods of increasing scale as well as lowering costs by utilizing their new 2nd generation Ultium battery pack that reduces costs by a further 40 per cent compared to the current one.
Canada is falling behind in EV adoption compared to the rest of the world; BloombergNEF released a statement reporting that worldwide EV adoption increased 70 per cent in the 1st half of 2022 when compared to last year and Canada is just “catching up” on EV’s, with China selling 56 per cent of all EV’s, Europe at 28 per cent, and the U.S. at 11 per cent.
The strong job market looks to keep up demand for vehicles as we enter a short recession amidst the pandemic and global supply shortages; this should enable overall retained value to stay strong through this period. The Government of Ontario looks to keep the provincial tax cut on fuel prices of 5.7 cents per litre until at least the end of 2023.