Used car prices pull ahead of used trucks in fairly flat market week

The Canadian used wholesale auto market was down -0.14%, according to Canadian Black Book. The 2017-2019 average was also -0.14%. The Canadian wholesale market for used cars was close to even, down -0.03%, and trucks were also down similar to last week at -0.24%.

Four segments of the car market made gains, with full size cars up 0.83%, Mid-size cars up 0.69% and premium sporty cars and compact cars both us 0.02%. Subcompact cars were down the most, at -0.37%, followed by luxury cars, down -0.29%, and near luxury  cars down -0.13%.

For trucks/SUVs, two segments experienced increases, with compact vans up 1.49% and sub-compact luxury crossover/SUVs were up 0.67%. The average decrease was -0.24%. Full size vans declined the most, down -0.75%, followed by full size luxury crossover/SUVs, which were down -0.37%, mid size crossover/SUVs were down -0.34%.

The average listing price for used vehicles was even week-over-week, as the 14-day moving average declined to $36,500. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots. The overall decreases were even with 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.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 that Ontario’s Premier, Doug Ford said while attending the 2023 Canadian International Auto Show last week that he was “dead against” the federal ZEV sales mandate requiring automakers to sell 100 per cent ZEV’s by 2035; this sentiment has been echoed by industry leaders like Larry Hutchinson, CEO of Toyota Canada and Jean Marc Leclerc, CEO of Honda Canada as the market identifies severe affordability issues and obstacles to mass EV adoption.

Light-duty vehicle production increased for the first time in 5 years in Canada, says Desrosiers Automotive Consultants, totaling 1.24 million units as 2022 increased 12 per cent versus last year. Genesis has now released its 3rd EV to the market, the Electrified GV70 joins the GV60 and G80 Electrified models as the brand continues to introduce compelling electric products to the luxury market in Canada.

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