The last time the Canadian automotive market saw a sales increase as large as was observed last year was in 1997, according to DesRosiers Automotive Consultants.

In its Canadian December sales update, DAC said final sales for 2023 from reporting OEMs came in at 1.664 million units — an increase of 11.8% per cent from the 1.489 million units sold in 2022. An improvement in vehicle supply during the second half of 2023 helped boost sales, which notably and impressively rebounded as pent-up demand from the million units of “lost sales” from 2020-22 was “more than enough to overcome high interest rates, and worrisome economic weakness.”

“Of the many remarkable aspects of 2023’s performance, one of the most notable was the continued gain in light truck share,” said Andrew King, Managing Partner of DAC, in a statement. “For 2023, light trucks continued to push out an ever-shrinking pool of passenger cars, with trucks reaching a record share of 85.8% for the year, as Canadian consumers enjoyed the freedom to choose the vehicles they want to purchase.”

DAC had previously predicted that 2023 would be one of those “rare occurrences” when auto sales increased, regardless of the onset of a recession.

December sales were estimated to be 120,000 units, which represents an increase of 10.7% from the same month in 2022. According to DAC, the market has now experienced 14 consecutive months of year-over-year growth. Furthermore, sales are up in all provinces in Canada, from coast to coast to coast. They were also up 17.2% in the fourth quarter of 2023, with the SAAR “regularly tracking at levels near or above 1.8 million units.”

The post Many ‘remarkable aspects’ to 2023’s impressive sales performance appeared first on Canadian Auto Dealer.

Although news of new vehicle sales units are in for December 2023, it is also worth keeping an eye on the Canadian used wholesale market — which saw a decline in prices of -0.54% for the week ending on Dec. 30, compared to the prior week’s -0.43%.

Based on Canadian Black Book’s market insights report, the car segment decreased by -0.53% (it was -0.41% the week before), while truck/SUV segment prices were down -0.55% (versus -0.45% the prior week). None of the 22 segments’ values increased for the week.

“The Canadian market continued to decrease, and the overall decrease slowed during the holidays with declines closer to the historical average,” said CBB in its update. “Supply is building with decreasing demand for vehicles at auction on both sides of the border. Upstream channels continue to tap supply before it can be available to wholesale markets.”

In comparison, the United States used vehicle market saw its overall car and truck segments decrease -0.68% last week and -0.70% the week before that. The volume-weighted car segments were down -0.51%, and the volume-weighted truck segments decreased by -0.80%.

As for the Canadian market, the car category saw a decrease across all of its nine segments, with the most significant decline coming from compact cars (-1.20%). This was followed by sub-compact cars (-0.72%) and mid-size cars (-0.70%). Segments experiencing the least decreases were full-size cars (-0.11%) and sports cars (-0.14%).

For trucks/SUVs, the segments with the largest declines were minivans (-1.59%), full-size crossovers/SUVs (-1.36%), sub-compact luxury crossovers/SUVs (-1.16%), and sub-compact crossovers (-1.03%). Other segments with notable depreciations were full-size pickups (-0.64%), mid-size crossovers/SUVs (-0.62%), and full-size vans (-0.61%).

You can read the full report here.

The post Canadian used market price decrease slowed during the holidays appeared first on Canadian Auto Dealer.

Cox Automotive released its December sales forecast for the United States and anticipates that the automotive industry will end 2023 with an increase of more than 11% year-over-year. It also foresees General Motors retaining its top spot, and Hyundai Motor stepping ahead of Stellantis.

In a news release, the company said December new-vehicle sales are expected to show gains over last year’s “product-constrained market,” which means that sales volume for the month should increase 6.2% over December 2022. Furthermore, they expect the seasonally adjusted annual rate (SAAR) to finish around 15.1 million in December — 1.6 million higher compared to 2022’s sales pace, but slightly lower than November’s 15.3 million level.

“December is generally a strong month for new-vehicle sales as holiday shoppers look for year-end deals, and this year will be no exception,” said Charlie Chesbrough, Senior Economist at Cox Automotive, in a statement. “With supply much higher now and incentives higher as well, this December is expected to finish significantly better than last year.”

However, he also noted that high vehicle prices and high interest rates “remain the industry’s Grinch right now, and that trend will continue into next year.”

As for the automakers, Honda, Nissan, General Motors and Tesla benefited from large year-over-year gains this year. The Hyundai Motor Group (Genesis, Hyundai, and Kia brands) enjoyed a strong year in the U.S. market, with sales up more than 12%. The group surpasses Stellantis (Jeep, Ram, Dodge, Chrysler and other brands) to slot fourth in overall U.S. sales, right behind Ford. Stellantis is the only OEM expected to post lower YOY sales, due to a lower volume/higher revenue per sales strategy.

The post U.S. expected to end 2023 with sales increase of more than 11% YOY appeared first on Canadian Auto Dealer.

The automotive forecast in the United States for the month of December, in terms of total new vehicle sales that include both retail and non-retail transactions, is expected to reach 1,396,700 units, according to a joint forecast from J.D. Power and GlobalData.

The projection represents a 13.2% increase from December 2022, which had one additional selling day compared to December 2023’s 26. The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to come in at 15.4 million units — an increase of 1.9 million units from December of last year.

“December results cap off the year with a strong performance, illustrated by double-digit year-over-year sales growth and the second-highest consumer expenditure on new vehicles ever recorded for the month,” said Thomas King, President of the Data and Analytics division at J.D. Power, in a statement.

He added that total sales of just under 15.5 million for 2023 are notable as they represent an increase of 12.8% from 2022, which saw 13.7 million vehicles sold. Furthermore, and of additional interest, is the record $578 billion stemming from consumer expenditure on new vehicles this year; this marks the third consecutive year in which U.S. consumers spent over half a trillion dollars on purchasing new vehicles.

“As inventory improves, the average new-vehicle retail transaction price is declining. Transaction prices in December are trending towards $46,055, down $1,274 — or 2.7% — from December 2022,” said King. “However, even with the decline in average transaction prices, consumers are on track to spend nearly $50.4 billion on new vehicles this month — the second highest on record for the month of December and 5.1% higher than December 2022.”

The post U.S. auto sector projected to sell 13.2% more new vehicles in December compared to 2022 appeared first on Canadian Auto Dealer.

With a decline less steep than the prior week’s -1.56%, the Canadian used wholesale market saw prices drop -0.96% for the period ending on Dec. 9, according to Canadian Black Book’s latest Market Insights report.

This time the car segment fell by -0.46% compared to -0.88% the prior week, and truck/SUV segment prices were down –1.46% compared to the last reporting period’s -2.23%. All declines are still more than the 2017-2019 average of the same week, including for the overall market. Two out of 22 segments’ values increased for the week.

“The Canadian market continued to decrease, and the overall decrease continues the high level of declines more than the historical average,” said CBB in its update. “Supply is building with decreasing demand for vehicles at auction on both sides of the border. Upstream channels continue to tap supply before it can be available to wholesale markets.”

All but one of the nine car segments experienced a decrease. Full-size cars managed an increase in pricing of +0.02%, whereas compact cars showed the most significant decrease with a -0.97% drop in pricing. That was followed by sub-compact cars (-0.91%) and mid-size cars (-0.68%).

Like cars, all segments but one under trucks/SUVs experienced a decrease in pricing during this reporting period. The segments with the largest depreciation were full-size luxury crossovers/SUVs (-2.95%), compact crossovers/SUVs (-2.56%) and compact luxury crossovers/SUVs (-2.33%). The single increase came from full-size crossovers/SUVs (+0.81%).

The average listing price for used vehicles, as per the 14-day moving average, was approximately $37,875. The analysis is based on around 210,000 vehicles listed for sale on Canadian dealer lots, according to CBB.

The full report is available here.

The post Price decline less steep this week for Canadian used wholesale market appeared first on Canadian Auto Dealer.

The Canadian used wholesale market saw its largest decline in prices yet, at –1.56%, for the period ending on Dec. 2. The prior week’s decline was only -0.38%, and Canadian Black Book’s Market Insights data indicates that the 2017-2019 average of the same week, a mere -0.31% in comparison, was significantly less steep.

Segment-specific, cars fell by -0.88% (compared to -0.23% the prior week), and truck/SUV segment prices declined –2.23% (compared to -0.53% the previous period). Not a single segment’s value increased for the week. In its report, CBB said the Canadian market “continued to decrease, and the overall decrease was the largest seen this year and more than six times the historical average.”

In the cars category, mid-size cars experienced the most significant decline in pricing (-3.11%), followed by near-luxury cars (-1.20%) and sports cars at (-1.13%). For trucks/SUVs, four segments had a 3% or greater depreciation: compact luxury crossovers/SUVs (-3.57%), compact crossovers/SUVs (-3.56%), full-size luxury crossovers/SUVs (-3.42%) and mid-size crossovers/SUVs (-3.00%).

CBB said supply remains low and demand for vehicles at auction on both sides of the border is decreasing. They also noted that upstream channels continue to tap into that supply before it can be made available to wholesale market.

“Most segments saw a change in average value of more than $100 this week as the truck and SUV segments fell the most,” said CBB. “We see that smaller vehicles have been outperforming their larger alternatives, as possibly both Canadian consumer budgets tighten and arbitrage risk to exporters continues to rise.”

They also noted that conversion rates were “quite low” during this reporting period, with some observed sell rates as low as 9% or as high as 49%. However, most were less than 30%. “Last week we saw less sellers dropping floors, which has been contributing to lanes with lower sell rates.”

You can read the full CBB report here.

The post Used market decrease ‘more than 6X the historical average,’ says CBB appeared first on Canadian Auto Dealer.

November new vehicle sales in the United States are projected to jump 10.2% from a year ago thanks to record-level consumer spending, according to a joint forecast from J.D. Power and GlobalData.

They are anticipating that new-vehicle sales for the month, which includes retail and non-retail transactions, will reach 1,236,000 units. November has 25 selling days this year, the same as in 2022. The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to reach 15.5 million units — an increase of 1.4 million units from the same period last year.

“November results indicate a robust performance with double-digit year-over-year sales growth and record consumer expenditures for the month,” said Thomas King, president of the data and analytics division at J.D. Power, in a statement. “The consumer expenditure record was due to strong sales growth, which outweighed a 1.9% decline in transaction prices.”

King continued, noting that sales growth is being helped by greater retail inventory levels, which are expected to finish around 1.6 million units in November despite the lengthy UAW work stoppage that occurred. If the month finishes with the number of units as expected, November will end with a 7.5% increase from last month and a 43.7% increase compared with November 2022.

“However, as inventory and sales volumes improve, the average new-vehicle retail transaction price is declining to $45,332, down $873 — or 1.9% —from November 2022,” said King in a statement, adding that “even with the decline in average transaction prices, consumers are on track to spend nearly $44.5 billion on new vehicles this month — the highest on record for the month of November and 9.5% higher than November 2022.”

The post J.D. Power, GlobalData predict 10.2% increase in U.S. November new vehicle sales appeared first on Canadian Auto Dealer.

New light vehicle sales showed a notable increase across all provinces in October, based on data reviewed by DesRosiers Automotive Consultants from reporting manufacturers.

The majority of provinces experienced a sales growth that surpassed 20% when compared to the same period a year earlier. In percentage terms, DAC said Saskatchewan led the way with an estimated sales increase of 26.3% for the month. The rest of the Prairie region also enjoyed success, with Alberta up 23.8% and Manitoba up 23.0%.

“With remarkable growth in October capping off a 12-month streak of year-over-year sales increases, the automotive market also saw that success more evenly spread across the provinces as inventory shortages continue to gradually ameliorate,” said Andrew King, Managing Partner at DAC, in a statement.

British Columbia outperformed the national average thanks to a 23.5% increase. And Ontario, which came in slightly below the national average, experienced a sales boost of 17.0% compared to the previous month. Still, DAC said the province maintained the second largest increase so far in 2023 (up 12.3%), and was only outperformed by Alberta (up 12.6% compared to the same period in 2022).

Overall, total new light vehicle sales among reporting OEMs managed to reach an estimated 145,957 units sold for October, an increase of 20.0%. “For the year thus far, the market saw an increase of 11.1% compared to the same time last year,” said DAC.

The post Most provinces see sales growth of more than 20% in October appeared first on Canadian Auto Dealer.

The Canadian used wholesale market experienced a steeper drop in prices of -1.11% for the week ending on November 18, according to Canadian Black Book’s Market Insights report.

The decline is notable as the prior week showed a decrease in prices of -0.66%, while the 2017-2019 average of the same week for this period was -0.27%. The car segment fell by -0.89% and truck/SUV segment prices were down 1.33%. Not a single segment’s values increased for the week.

“The Canadian market continued to decrease, and the overall decrease was much larger than the historical average. Supply remains low with decreasing demand for vehicles at auction on both sides of the border,” said CBB in its update.

In comparison, the overall car and truck segments in the United States decreased -1.55% last week and -1.48% the prior week. The volume-weighted car segments were down -1.35%, compared to -1.13% the prior week. And the volume-weighted truck segments decreased by -1.53%, compared to -1.73% the previous week.

In the car category, sub-compact cars (-0.16%), luxury cars (-0.31%), and prestige luxury cars (-0.39%) experienced the least declines. Full-size cars had the most significant decrease with (-1.89%), followed by near luxury cars (-1.82%) and sports cars (-1.18%).

For trucks/SUVs, all segments showed a decline. The one with the highest decrease was full-size luxury crossovers/SUVs (-3.17%), which was followed by mid-size luxury crossovers/SUVs (-1.91%) and compact luxury crossovers/SUVs (-1.69%). Compact crossovers/SUVs also experienced a noteworthy decline (-1.34%), while mid-size crossovers/SUVs and minivans had the same decrease (-1.24%).

The average listing price for used vehicles, as per the 14-day moving average, was approximately $37,950. The analysis is based on around 206,000 vehicles listed for sale on Canadian dealer lots, according to CBB.

The full report is available here.

The post Canadian used market sees significant -1.11% drop in prices appeared first on Canadian Auto Dealer.

The Canadian used wholesale market saw prices slip -0.66% for the period ending on Nov. 11, down further from last week’s -0.52% and the 2017-2019 average of -0.36% for the same week.

As Canadian Black Book noted in its Market Insights update, the market continues to decrease and the overall decrease for this period is larger than the historical average. The car segment saw a decrease of -0.43% and truck/SUV segment prices declined -0.89%. No segment values increased for the week.

“Supply remains low with decreasing demand for vehicles at auction on both sides of the border,” said CBB in its report. “Upstream channels continue to tap supply before it can be available to wholesale markets. Many segments saw a change in average value of more than $100 this week as the truck and SUV segments fell the most.”

In the United States, the car and truck segments decreased -1.55% overall last week compared to -0.95% the prior week. The volume-weighted car segments dropped -1.13% compared to the prior week’s decrease of -0.57%. And the volume-weighted truck segments were down -1.73%, versus the -1.12% a week earlier.

For the Canadian market sports cars showed the least decline (-0.07%), followed by compact cars (-0.19%) and sub-compact cars (-0.21%). The most significant decreases came from near-luxury cars (-0.73%) and mid-size cars (-0.72%).

As for trucks/SUVs, all segments showed a downturn — with the most significant decline coming from compact vans (-1.97%). This was followed by mid-size crossovers/SUVs (-1.73%) and compact crossovers/SUVs (-1.67%). Other notable segment declines include minivans (-1.43%), small pickups (-1.18%), and sub-compact luxury crossovers (-1.13%).

The average listing price for used vehicles, as per the 14-day moving average, was approximately $37,900. The analysis is based on around 206,000 vehicles listed for sale on Canadian dealer lots, according to CBB.

You can read the full report here.

The post Canadian used market sees prices slip -0.66%, down further from prior week appeared first on Canadian Auto Dealer.

Electric vehicles are growing in popularity in the United States as prices continue to fall and technology improves, according to a new survey from FormRush. Key insights from November 2023 show that there are currently 2,442,300 EV owners in the U.S. (7.18 per 1,000 people).

From 2016-2022, there has been a 771.3% increase in the number of EVs within the country. The top states outpacing the U.S. in EV ownership are California, Hawaii, Washington, Oregon, Nevada, Colorado, New Jersey, Arizona, Utah and Vermont. California currently leads with 23 EVs for every 1,000 residents.

“EV ownership in the Golden State skyrocketed between 2021 and 2022, jumping 60%. And get this – it grew a whopping 539% between 2016 and 2021! Talk about setting the pace,” wrote Rinas Bullatovci, Senior Content Editor for FormRush. “The state just hit a huge milestone too — a quarter of all new cars sold there in the second quarter of 2023 were plug-in electrics.”

In Nevada, EV registrations surged 89% from 2021 to 2022. In Utah, a state known for its canyons and alpine peaks, nine out of every 1,000 residents own an EV. This represents a 70% spike in EV ownership since 2021. And in Washington, one in every 14 people drives an EV. Registrations increased 56% from 2021 to 2022 in the state.

“The state is definitely gathering speed on the road to reducing fossil fuel dependence,” added Bullatovci. “As EVs replace more gas-powered cars each year, Washington moves closer to its vision of sustainable, eco-friendly transportation.”

Image credit: FormRush

The post U.S. sees EV popularity rise as prices fall and tech improves appeared first on Canadian Auto Dealer.

This week dealers will see that the Canadian used wholesale market experienced a decline in prices of -0.52% for the period ending on Nov. 4, which is notably more than the prior week’s -0.27% decrease.

That is according to Canadian Black Book’s latest Market Insights report, which found that the car segment was down -0.40% this period versus the prior week’s -0.30%. Truck and SUV segment prices dropped to -0.63% from the previous period’s -0.25%. No segment values increased this week.

“The Canadian market continued to decrease, and the overall decrease was larger than the historical average,” said CBB in its update. “Supply remains low with high demand for more recent and clean condition vehicles on both sides of the border.”

In the United States, overall the car and truck segments decreased -0.95%, which is steeper than the prior week’s -0.60% decline. The volume-weighted car segments were down -0.57% (versus the previous -0.53% decrease), while the volume-weighted truck segments decreased by -1.12%. That is compared to the previous week’s decrease of -0.63%.

For the Canadian car segments, the least declines were seen in premium sports cars (-0.16%) and luxury cars (-0.20%). In contrast, the most significant decrease came from full-size cars (-0.95%), followed by mid-size cars (-0.85%). Prestige luxury cars and near-luxury cars both saw the same decreases (-0.47%).

In the truck/SUV category all segments showed a downturn, with the most significant decline coming from minivans (-2.10%). That was followed by full-size luxury crossovers/SUVs (-1.85%) and sub-compact crossovers (-1.33%). Also worth mentioning is the decline experienced by sub-compact luxury crossovers (-0.86%) and full-size crossovers/SUVs (-0.68%).

The average listing price for used vehicles, as per the 14-day moving average, was approximately $38,000. The analysis is based on approximately 206,000 vehicles listed for sale on Canadian dealer lots, according to CBB.

You can read the full report here.

The post Used vehicle market sees steeper decline in prices appeared first on Canadian Auto Dealer.