The Canadian used wholesale market is gaining momentum, with all 22 segments experiencing price increases for the week ending on September 10, according to a recent auto market update from Canadian Black Book.
“As inventory continues to decline for both new and used vehicles, overall prices increased 0.41% week-over-week,” said CBB. “Overall wholesale prices in both the car and truck/SUV segments saw increases, with car segments increasing the most (+0.55%), led by the full-size car (+1.12%) segment.”
All car segments experienced price increases for the week, including full-size cars but also sports cars (up 0.92%) and prestige luxury cars (up 0.75%).
And for the second consecutive week, all truck/SUV segments managed price increase for the week, with the overall segment experiencing a price increase of 0.28%, thanks to its mid-size crossovers/SUVs (up 0.52%), followed closely by compact crossover/SUVs (up 0.50%), and sub-compact crossovers (up 0.42%).
“The Canadian wholesale market continues to increase after weeks of seeing the market soften. This past week, all segments reported increasing values,” said CBB. “Supply remains low with demand slightly picking up on both sides of the border. Upstream channels continue to tap supply before it can be available at physical auctions.”
Conversion rates also improved this past week after a period of inconsistent sales, with rates jumping into the 80% range on some lanes last week—“with the few low kilometre, good condition units garnering high levels of bidding activity.”
CBB said the U.S. market exchange rate is also similar to its previous update, and remains favourable for exportation when considering both price and demand.
Separately, it is also worth noting that employment was up by 90,000 (0.5%) in August, representing the third consecutive monthly increase. The unemployment rate fell 0.4 points to 7.1%, which CBB said is the lowest since the start of the COVID-19 pandemic.
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