The Canadian used wholesale auto market was down -0.27%, according to Canadian Black Book. The 2017-2019 average was -0.29%. The Canadian wholesale market for used cars declined, down -0.25%, and trucks were also down more from last week at -0.29%.
“The wholesale market is beginning its correction after two years of shocking increases. This won’t happen overnight, and likely will not return to pre-pandemic levels, however, we do expect the downward trend to continue,” says David Robins, Principal Automotive Analyst and Head of Canadian Vehicle Valuations at Canadian Black Book.
Two segments of the car market made very slight gains, with premium sporty cars up a slight 0.08%, and subcompact cars up 0.03%. Full-size cars were down the most, at -1.50%, followed by luxury cars, down -0.49%, and near luxury cars, down -0.45%. Mid-size cars were down -0.41%.
For trucks/SUVs, all the segments experienced decreases, though none were close to as steep as the declines from last week. Minivans declined the most, down -0.65%, followed by compact vans, which were down -0.54% for the week, Full size crossover/SUVs were down -0.49% and full size pickups were down -0.46%.
The average listing price for used vehicles decreased week-over-week, as the 14-day moving average declined to $36,900. 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.”
October Sales in Canada were the lowest they’ve been in almost 15 years, says Desrosiers Automotive Consultants, as this past month was 5.3% lower than last October and the lowest on record since 2009.
Canadian Parts/Assembly supplier, Magna International Inc., says “the supply picture is improving and helping boost their bottom line, but disruptions continue to weigh on operations and profits” as the supply chain has not improved as much as initially thought for the 2nd half of this year.
Year-over-year, most segments measured by Canadian Black Book saw growth except larger vehicles like Full-Size Pickups, which lost -6.79% compared to October 2021, Full-Size Crossover/SUV losing -4.97% and Small Pickup decreasing by -1.5%. Conversely, Sub-Compact Car and Compact Car saw the most growth year-over-year, with 41.57% and 32.18% respectively, further backing up the theory that fuel prices are driving purchase behaviour.
