After two weeks of declines and months of growth for used vehicle wholesale prices, the market saw prices flatten for the week ending on January 25, based on Canadian Black Book’s latest update.
“The Canadian used wholesale market saw prices remain relatively flat for the week,” said CBB in its report. “Prices for truck/SUV segments remained flat for the week, while the car segment increased slightly, as buyers/dealers continue to take a wait-and-see approach.”
Overall, prices were up 0.06% for the week, with the car segments increasing 0.13% and truck/SUV segments flattening this week (0.00%) compared to the previous one. In comparison, the overall car and truck segments in the United States were down for a fifth consecutive week, at -0.17%.
For Canadian cars, the near-luxury car segment experienced the largest price increase for the week (+0.75%), followed by sub-compact cars (+0.68%) and sports cars (+0.14%). The prestige luxury car category saw the largest decline in prices—now for the second consecutive week—at -0.43%. This was followed by mid-size cars (-0.26%) and full-size cars (-0.20%).
As for trucks/SUVs, commercial vehicles experienced the largest price increase—now for the second consecutive week—while full-size vans and compact vans saw prices increase 0.98% and 0.79%, respectively. Minivans experienced a price jump of 0.75%.
On the down side, the pickup segments continued to see price declines, with the small pickup category down 0.75% and full-size pickups down 0.67%.
The average listing price for used vehicles for the 14-day moving average is now above $33,000, based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.
“Conversion rates weakened this past week as market demand cooled slightly,” said CBB. “Rates were observed into the 40% range on some lanes last week, with the few low kilometre, good condition units garnering high levels of bidding activity.”
In other news, retail sales increased by 0.7% to $58.1 billion in November 2021, thanks to higher sales at gas stations (+4.9%), building material and garden equipment suppliers (+3.0%), and food & beverage stores (+1.0%).
The Consumer Price Index (CPI) was up 4.8% on a year-over-year basis in December 2021, and the Canadian dollar was slightly down against the USD, finishing the week at $0.79.
