Used vehicle market sees steeper decline in prices

This week dealers will see that the Canadian used wholesale market experienced a decline in prices of -0.52% for the period ending on Nov. 4, which is notably more than the prior week’s -0.27% decrease.

That is according to Canadian Black Book’s latest Market Insights report, which found that the car segment was down -0.40% this period versus the prior week’s -0.30%. Truck and SUV segment prices dropped to -0.63% from the previous period’s -0.25%. No segment values increased this week.

“The Canadian market continued to decrease, and the overall decrease was larger than the historical average,” said CBB in its update. “Supply remains low with high demand for more recent and clean condition vehicles on both sides of the border.”

In the United States, overall the car and truck segments decreased -0.95%, which is steeper than the prior week’s -0.60% decline. The volume-weighted car segments were down -0.57% (versus the previous -0.53% decrease), while the volume-weighted truck segments decreased by -1.12%. That is compared to the previous week’s decrease of -0.63%.

For the Canadian car segments, the least declines were seen in premium sports cars (-0.16%) and luxury cars (-0.20%). In contrast, the most significant decrease came from full-size cars (-0.95%), followed by mid-size cars (-0.85%). Prestige luxury cars and near-luxury cars both saw the same decreases (-0.47%).

In the truck/SUV category all segments showed a downturn, with the most significant decline coming from minivans (-2.10%). That was followed by full-size luxury crossovers/SUVs (-1.85%) and sub-compact crossovers (-1.33%). Also worth mentioning is the decline experienced by sub-compact luxury crossovers (-0.86%) and full-size crossovers/SUVs (-0.68%).

The average listing price for used vehicles, as per the 14-day moving average, was approximately $38,000. The analysis is based on approximately 206,000 vehicles listed for sale on Canadian dealer lots, according to CBB.

You can read the full report here.

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