Little change was observed in the Canadian used wholesale market between this week (for the period ending on Dec. 14), and the previous week’s Canadian Black Book Market Insights report — including from the overall car and truck/SUV markets.
The overall market was down -0.63% compared to the prior week’s -0.64%, and the 2017-2019 average of -0.38% for the same period. The overall car category was down -0.62%, which is exactly where it was in last week’s report. And the overall truck/SUV category was down -0.63%, from -0.65% the prior week.
“The Canadian market remains on a downward trajectory, almost mirroring its previous week’s decline,” said CBB in its update. “Just over 86% of market segments experienced an average value change of more than ±$100. The decrease in the truck segments fell by 2%.”
CBB added that monitored auction sale rates ranged from 15.4% to 70.1%, averaging at 43.5%. And that the continuous fluctuation in sale rates across various lanes is due to a number of factors, such as the recent adjustments to interest rates and the ongoing gradual decline in floor prices.
The increased infusion of supply into the wholesale market has slowed, however CBB also said upstream channels continue to gain early access. “As the year nears to an end there continues to be a high demand on both sides of the border for an increase in inventory and vehicles at auctions.” Will there be significant shifts due to U.S. President Elect Donald Trump’s tariff threat?
As for the state of used cars in Canada, the three segments that decreased the least were premium sports cars (-0.23%), sports cars (0.39%), and near luxury cars (-0.42%). The largest decreases came from sub-compact cars (-1.35%), compact cars (-1.11%), and prestige luxury cars (-1.02%).
For trucks/SUVs, the largest declines came from minivans (-1.98%), mid-size crossovers/SUVs (-1.07%) and full-size crossovers/SUVs (1.00%). However, mid-size luxury crossovers/SUVs (-0.24%), compact luxury crossovers/SUVs, and small pickups (-0.38%) all have much smaller declines.
On the U.S. side, the rate of decline of the used vehicle market is typical for this time of year. CBB said the standard depreciation for this same week before the pandemic was 0.60%, whereas last week’s overall depreciation rate was 0.53%.
