A new all-time record was set in March 2021 according to the Canadian Black Book Used Vehicle Retention Index, which tracks the retained value performance of two to six-year-old vehicles. The index rose to 118.6 in March, an increase of 4.6 points from February 2021 and marked an increase of 4.1% and 10.6% compared to February and March 2020 respectively, indicating that Canadian wholesale used vehicle prices are at an all-time high.
Image courtesy of Canadian Black Book’s Canadian Auto Market Update April 6, 2021.
Canadian Black Book’s Canadian Auto Market Update reported this past week (ending April 2, 2021), that Canada’s used vehicle market continued to break records as wholesale price increases expressed the impact of new vehicle production shortages. As a result, light new and used inventory levels as well as new and used vehicles remained in high demand.
The vehicle segment that saw the highest week-over-week price increase was cars (+0.52%). Truck/SUV segments also showed a very strong performance (+0.68%), although increases were not as strong as compared to the prior week.
Image courtesy of Canadian Black Book’s Canadian Auto Market Update April 6, 2021.
Average listing prices also strengthened this past week, with the 14-day moving average reaching approximately $25,080. However, a weekly decline in listing volume continued, with the 14-day moving average approximately 127,300 units. “Combined with the increase in demand, the drop in listing volume continues to have a positive impact on prices,” Canadian Black Book notes.
Image courtesy of Canadian Black Book’s Canadian Auto Market Update April 6, 2021.
Image courtesy of Canadian Black Book’s Canadian Auto Market Update April 6, 2021.
A decline in used retail listing volume continued, with the Canadian Black Book Listing Volume Index noting a drop to 0.992, which is nearing similar levels compared to this time last year. This decline echoes the supply shortages the industry has faced in new and used vehicle inventory. “Tight used vehicle inventory levels, relative to demand, will continue to be a key factor in the near-term,” the Canadian Black Book’s report predicts.
In addition to COVID-19, other factors affecting the market include an increase in consumer confidence, a relatively stable Canadian dollar, and an increase in Canada’s real GDP. Of course, the global microchip shortage continues to plague OEMs, including Hyundai and Ford, which have reported recent production struggles.
