The Canadian used wholesale market experienced a decline of -0.33% in pricing for the week ending on Dec. 21, 2024, according to a recently released update from Canadian Black Book. The decline is less than the prior report’s -0.63%, and similar to the 2017-2019 average of -0.32% for the same week.
Car segments saw prices decrease by -0.26%, also less of a decline than the previous CBB’s update showing -0.62%. And the truck/SUV segments were down -0.39% from the previous week’s -0.63%. The largest declines in the car segments came from compact cars, and for trucks/SUVs it was compact crossovers/SUVs and compact luxury crossovers/SUVs — both sharing the same decline.
“The Canadian market remains on a downward trajectory, with a decline far less pronounced that in its previous week,” said CBB in its Market Insights update. “Just over 36% of market segments experienced an average value change of more than ±$100. The decrease in the car segments fell by 36%, while that of the truck segments dropped by 24%.”
In the car category, the three segments that experienced the smallest declines were premium sports cars (-0.08%), mid-size cars (-0.20%), and near luxury cars (-0.20%). The largest decreases were seen from compact cars (-0.96%), sub-compact cars (-0.39%, and), and full-size cars (-0.34%).
For trucks/SUVs, the segments with the largest declines were compact crossovers/SUVs and compact luxury crossovers/SUVs (both down -0.53%), full-size vans (-0.50%), and mid-size crossovers/SUVs (-0.49%). The one segment that managed an increase was full-size crossovers/SUVs (+0.19%).
“Monitored auction sale rates ranged from 7% to 70% averaging at 32.6%. The continuous fluctuation in sale rates across various lanes can be attributed to several factors including the recent adjustments to interest rates and the ongoing gradual decline in floor prices,” said CBB. “The increase in supply entering the wholesale market has slowed down in comparison to previous weeks, however upstream channels (continue) to gain early access.”
In the United States the auctions recorded the highest total inventory of the year last week, along with a 2% decrease in the auction conversion rate. Depreciation slowed for the second consecutive week, though CBB said buyers are showing increased caution. “The market’s -0.46% decline aligns with typical seasonal depreciation patterns, slightly better than the pre-pandemic average during the same week of -0.50%,” they said.
