Used car market remains very stable, in line with pre-pandemic levels

The Canadian used wholesale auto market was down -0.22%, according to Canadian Black Book. The 2017-2019 average was also -0.21%. The Canadian wholesale market for used cars was down -0.21%, and trucks were also down similar to last week at -0.22%.

None of the car market made gains, but full size cars were exactly even from last week. All the other segments were down. Subcompact cars were down the most, at -0.67%, followed by compact cars, down -0.45%, and mid size cars down -0.40%.

For trucks/SUVs, only two segments experienced increases, with compact vans up 0.91% and compact luxury crossover/SUVs were up 0.04%. The average decrease was -0.22%. minivans declined the most, down -1.57%, followed by sub-compact luxury crossover/SUVs, which were down -0.92%, sub-compact crossover/SUVs were down -0.34%.

In contrast to the U.S (United States) market, the Canadian market has been behaving more “normal” in the past year, with average depreciation closely following a pre-pandemic trendline. The Canadian wholesale market decreased further last week. The overall decrease was similar to the historical average. Supply remains low with high demand for more recent and clean condition vehicles on both sides of the border. Upstream channels continue to tap supply before it can be available to wholesale markets. Less segments saw increases this week as the market continues to stabilize.

The Canadian unemployment rate remained stable at 5% in February which exceeded market expectations of a 5.1% rate. 21,800 jobs were added in the month in total. Bank of Canada held its overnight rate at 4.5% in March as it was previously signaling. Canadian 10-year government bond yields rose to below 3% as investors look to the US market. The Canadian dollar is around $0.725 as of this Monday morning down from $0.738 a week prior.

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