Wholesale used car prices have continued to mildly decline from their historical high numbers set in March, Canadian Black Book reported this week. For the week ending July 29, the market as a whole was down -0.28%, with cars down -0.17%, and trucks slightly more at -0.38%. According to the report, “Value changes this week seem to be returning to normal seasonality, as can be seen in the 2017-2019 average changes,” which were also -0.28%.
The US market exchange rate remains favourable for exportation, leading to a continuous stream of vehicles south across the border. The report states, “conversion rates fluctuated this week. Some observed sell rates were as low as 12 per cent, but most were in the 30-40 per cent range this week. We are seeing more sellers holding floor prices higher than buyers are willing to go, which has been contributing to lanes with lower sell rates.”
Cars outperformed trucks in the time period, with a decrease of only -017%. three of the non-luxury segments of the car market lead the way in price gains, with mid-size cars up 0.46%, and compact cars up 0.43% and sub-compact cars up 0.22%. Sporty cars were down the most, at -0.82%, followed by full-size cars at -0.57% and luxury cars, which were down -0.49%.
For trucks/SUVs, there was one quite significant price increase, with compact vans up 3.55%. Sub-compact crossovers were also slightly up at 0.12%. The rest of the segments declined marginally, with full-size vans down the most, down a full -1.97%, followed by full-size luxury crossover/SUVs which were down -0.41% for the week.
The average listing price for used vehicles increased slightly week over week, as the 14-day moving average is just above $37,000. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.
In other news, The Canadian economy likely expanded by 1.1% on a quarterly basis during Q2 2022, according to preliminary estimates. On a monthly basis, the economy grew by 0.1% in June, amid higher output in construction, manufacturing, and accommodation and food services industries, while mining, quarrying, and oil extraction declined. Regarding May, the Canadian economy stagnated, improving from preliminary estimates of a 0.2% contraction.
