The wholesale market as a whole was steady at -0.22%, though slightly below the same level as the 2017-2019 average at -0.19%, according to Canadian Black Book. The Canadian wholesale market for used cars was down -0.20%, outperforming trucks and SUVs (down -0.24%) for the 13th straight week.
The overall volume-weighted used car segment continues bumbling along, down overall by -0.20% compared to being down -0.15% last week. Cars were a bit down from the 2017-2019 average (-0.14%). The truck/SUV market continued on a downhill path of -0.24% for the week, compared to the previous -0.29%.
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, and they are opting for smaller, more efficient cars over big trucks and SUVs, 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.”
More than half of the used car segments dropped from last week, with the majority of gains made by subcompact cars, which were up 0.23%. Luxury cars and full-size cars were up by 0.03% and 0.05% respectively. All the rest were down, the lowest drops being sporty cars at -0.45%, and mid-size cars, which were down -0.46%.
For trucks/SUVs, there were only three slight price increases, with sub-compact crossovers and compact vans continuing positive growth from last week at 0.08% and 0.27%. Every other segment was down once again, led by full-size vans (-0.58%), full-size luxury crossover/SUVs (-0.42%), and full-size crossover/SUVs (-0.35%).
The average listing price for used vehicles decreased slightly week over week, as the 14-day moving average slightly below $37,000. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.
In other news, Canada’s 10-year government bond yield climbed above 3.62%, consolidating the rebound of the previous session, as inflation risks recovered ground amid higher commodity prices and China’s gradual reopening pushed back recession woes. With Statistics Canada reporting that the annual rate of inflation soared to 7.7 per cent in May, the report predicts the “central bank will be pressured to act swiftly and show Canadians that it will take the necessary steps needed to stifle inflation. All signs point to a 0.75% increase to the interest rates.” The Canadian dollar remained steady against the USD, finishing the week at $0.77.
