Canadian Used Car Market Sees Slower Price Decline
The Canadian used wholesale market’s price decline continued, but at a slower pace than the previous week. According to Canadian Black Book (CBB), the decrease was -0.21% for the period ending June 14, compared to -0.35% the week before.
Segment-wise Price Movements
- Car segment prices dropped -0.10%, down from -0.21% the previous week.
- Truck/SUV segments decreased by -0.30%, compared to -0.47% a week earlier.
The largest declines in the car segment came from:
- Full-size cars: -0.87%
- Compact cars: -0.28%
- Mid-size cars: -0.25%
- Prestige luxury cars: -0.14%
Sub-compact cars were the exception, seeing a gain of +0.04%.
For trucks/SUVs, notable declines included:
- Full-size pickups: -0.55%
- Mid-size luxury crossovers/SUVs: -0.47%
- Mid-size crossovers/SUVs: -0.34%
- Compact crossovers/SUVs and full-size luxury crossovers/SUVs: -0.26%
Minivans saw a modest uptick of +0.05%.
Market Insights
CBB reported that just over 18% of market segments experienced an average value change of more than ±$100. Monitored auction sale rates ranged from 17% to 75.2%, averaging at 44%. The fluctuation in sale rates across various auction lanes is attributed to factors like ongoing political variances and changes in floor prices.
Supply remains high, but upstream channels are gaining early access due to high demand for more inventory at vehicle auctions on both sides of the border. The average listing price for used vehicles was $37,600, based on around 220,000 used vehicles listed for sale on Canadian dealer lots (14-day moving average).
Additional Industry News
- Zero-emission vehicle sales were down year-over-year in April, largely due to the absent federal iZEV rebate. However, market share improved to 7.5% in April from 6.5% in March.
- The Renault Group is considering bringing its Alpine sports car brand to Canada as its entry into the North American market.
- Ford Canada CEO Bev Goodman is advocating for the repeal of Canada’s ZEV mandate, citing a significant decline in consumer demand for electric vehicles.
