Canada’s used wholesale vehicle market continued to soften in the week ending May 9, though the pace of declines moderated compared with recent weeks, according to Canadian Black Book.
Overall wholesale prices declined 0.21 per cent for the week. Car segment values were unchanged overall, while truck and SUV segments fell 0.37 per cent. The overall market decline was slightly worse than the 2017-2019 seasonal average decline of 0.19 per cent for the same week.
Among car segments, sub-compact cars posted the steepest decline at 1.55 per cent, followed by mid-size cars at 0.34 per cent. Sports cars led gains with a 0.24 per cent increase, while full-size cars and luxury cars also posted modest increases.
Truck and SUV values weakened further, led by full-size vans, which dropped 2.50 per cent, and compact vans, down 1.64 per cent. Full-size crossover/SUV segments also declined sharply. Full-size luxury crossover/SUV was the only truck category to post a gain, rising 0.15 per cent.
Auction conversion rates ranged from 20.9 per cent to 86.2 per cent, averaging 48.3 per cent. Canadian Black Book said political conditions and firm floor pricing from sellers continued affecting auction performance, even as inventory levels normalized.
The average used vehicle listing price in Canada slipped slightly to $37,700 based on aboout 199,000 dealer listings nationwide.
In industry news, Canadian Black Book noted electric vehicles are reaching near price parity with gasoline-powered models as federal rebates and manufacturer incentives return. The report highlighted discounted pricing on several EV models, including the Fiat 500e, Chevrolet Bolt, Subaru Uncharted and Kia EV4.
The report also pointed to Honda pausing its planned $15-billion EV investment strategy amid market volatility, while Mitsubishi reported tariff-related operating profit pressure tied to its lack of U.S. manufacturing capacity.
