The wholesale market continued on a mild decline this week, according to Canadian Black Book. The Canadian wholesale market for used cars continued its mostly flat trajectory with another very slight decline overall for the tenth straight week. The week ending on June 3 was down very slightly, -0.09% compared to the previous week’s -0.01%, according to the report. The 2017-2019 average for that week was -0.16%.
The overall volume-weighted used car segment continues to slowly and mildly sink, down overall by -0.07% compared to being down 0.09% last week. The truck/SUV continued a slight decline of -0.12% for the week, compared to the previous -0.11%.
“The Canadian wholesale market has continued to remain stable overall with no real improvements in sales prices last week compared to the week prior,” says the CBB report. “Supply remains low while demand continues to soften on both sides of the border. Upstream channels continue to tap supply before it can be made available at physical auctions.”
Only one of the nine car segments increased last week, with full size cars gaining 0.45%. Everything else was stable, down only around -0.01%, except luxury cars, which dropped -0.43%
For trucks/SUVs, there were only two slight price increases, with compact vans and sub-compact crossovers gaining 0.01% and 0.02%, respectively. Every other segment was down, led by full-size crossover/SUVs, down -0.38%, and small pickups, down -0.37%.
Prices are still close to historic highs, but are not continuing to climb, as prices have languished week-over-week, and the 14-day moving average remains slightly below $37,000. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.
In other news, Bank of Canada increased interest rates by 50 basis points to combat inflation, and consumer confidence is at a 18 month low, reflecting concerns about inflation, real estate values and the future strength of the Canadian economy.
