The Canadian used wholesale auto market was down -0.58%, according to Canadian Black Book. The 2017-2019 average was -0.28%. The Canadian wholesale market for used cars declined significantly, down -0.67%, and trucks were also down more from last week at -0.51%. The overall decreases were more than double those from the last two reports and nearly double the historical average.
No segments of the car market made gains, and many segments were down large amounts. Sporty cars were down the most, at -1.82%, followed by full size cars, down -1.36%, and luxury cars down -0.98%. Near luxury cars were down -0.61%.
For trucks/SUVs, all the segments experienced decreases, with an average decrease of -0.51%. Full size vans declined the most, down -1.55%, followed by sub-compact luxury crossover/SUVs, which were down -1.05%. full-sized pickups were down -0.79% for the week, compact vans were down -0.80%.
The average listing price for used vehicles was consistent with the last two weeks, as the 14-day moving average declined to $36,700. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots. The US market exchange rate remains favourable for exportation, leading to a continuous stream of vehicles south across the border. “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.”
Desrosiers Automotive Consultants reported that new light-vehicle sales in November increased 4.1% compared to last year, a positive note in an overall negatively anticipated sales year amounting to only 1.38 million units to date in 2022; a doubtful sign that sales will eclipse the 1.5 million unit mark in Canada.
The strong job market looks to keep up demand for vehicles as we enter a short recession amidst the pandemic and global supply shortages; this should enable overall retained value to stay strong through this period.
