But seasonally-adjusted price index continues to climb
ADESA Canada’s Used Vehicle Price Index strengthened by approximately 0.8pts from June, seasonally adjusted. True to ALG’s forecast, auction prices continued to show weakness, but not at the level seasonally expected, causing the Index to climb.
Although auction volume dropped by 28 percent, month-over-month (MoM), prices continued to weaken, particulary in the full-size pickup segment, which registered a 5-percent ($607) MoM decline. All other vehicle segments, except mid-compact and compact SUV reflected less than 2-percent MoM decline in resale prices.
The mid-compact segment saw 29-percent
(767 units) fewer sales, which helped keep the month-over-month resale prices for that class steady. On the other hand, while the compact SUV segment saw 35-percent (284 units) fewer sales, resale prices for that segment increased by 1 percent ($135) MoM.
New-vehicle sales were up from last year, both for July and year-to-date. This, coupled with the OEMs continuing to offer substantial price adjustments for new full-size pickups, provides little price support for this off-lease vehicle segment. Although, with the level of used full-size pick-up vehicles dropping, an organic price support level is near.
This information was provided by ADESA Canada. A summary of the current OPENLANE Market Index report is posted on our website, www.canadianautodealer.ca. Search OPENLANE.
