The wholesale market as a whole continues to slightly decline, down -0.22%, but less than the the 2017-2019 average, which was -0.27%, according to Canadian Black Book. The Canadian wholesale market for used cars and trucks was equal, both down -0.22%.
The overall volume-weighted used car segment continues ambling along, down overall by -0.22% compared to being down -0.25% last week. Cars were about the same as the 2017-2019 average (-0.25%). The truck/SUV market improved, but continued on a downhill path of -0.22% for the week, compared to the previous -0.23%.
The US market exchange rate remains favourable for exportation, leading to a continuous stream of vehicles south across the border. Gas prices are still an influence on buyer behaviour, though trucks are finally outperforming cars, says the report. “Supply remains low while demand is high on both sides of the border. Upstream channels continue to tap supply before it can be made available at physical auctions.”
Only two segments of the car market made modest gains, with prestige luxury cars up 0.37%, and luxury cars up 0.08%. Near luxury cars and mid-size cars were down the most, at -0.64%, and -0.49% respectively.
For trucks/SUVs, there was only one slight price increase, with full size pickups up just 0.05%. Compact luxury crossovers declined the most, down a full -0.46%, followed by small pickups which were down -0.44% 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, Unemployment came down from 5.1 per cent in May as the participation rate fell. In further evidence of how tight the labour market is, Statistics Canada said hourly wages spiked 5.6 per cent year-over-year.
According to new research highlighted by Bloomberg, Canadian consumer confidence levels have fallen to near crisis-era lows. The Bloomberg Nanos Canadian Confidence Index, a measure of sentiment based on weekly polling, declined for a ninth straight week. This marks the lowest reading ever outside of the last two economic crises. The Canadian dollar has fluctuated over the past week but remains in the $0.77 range.
The Bank of Canada has been hiking its key overnight interest rate aggressively this year to combat skyrocketing inflation, which surged to 7.7 per cent in May, the fastest rise in nearly four decades and well above economists’ expectations. With the central bank maintaining its two per cent target, more aggressive moves are expected this month and beyond to bring inflation down by 5.7 per cent.
