The wholesale market as a whole continues to slightly decline, down -0.26%, more than the 2017-2019 average, which was -0.21%, according to Canadian Black Book. The Canadian wholesale market for used cars was down -0.40%, compared to being down -0.22% last week. The truck/SUV market improved, but continued on a downhill path of -0.12% for the week, compared to the previous -0.22%, compared to the 2017-2019 average of -0.21%.
The US market exchange rate remains favourable for exportation, Arbitrage opportunities have continued to bring US buyers, causing a steady flow of vehicles south across the border. Gas prices are dipping slightly, but are still an influence on buyer behaviour, says the report. “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.”
Only two segments of the car market made modest gains, with sub-compact cars up 0.27%, and prestige luxury cars up 0.04%. Mid-size cars were down the most, at -1.07%, with full-size cars down -1.02%.
For trucks/SUVs, there were only three slight price increases, with full size vans up just 0.45%, minivans up 0.34% and sub-compact crossovers up 0.16%. Compact vans declined the most, down a full -1.61%, followed by sub-compact luxury crossovers which were down -0.71% for the week.
The average listing price for used vehicles increased slightly week over week, as the 14-day moving average is just above $37,000. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.
In other news, The Bank of Canada expects inflation to go “a little over” eight per cent for the month of June and stay in that range for a few more months, Governor Tiff Macklem told a business group in a webcast transcript released late Friday.
Bank of Canada increases policy interest rate by 100 basis points, continues quantitative tightening, and the Canadian dollar strengthened against the greenback on Monday, and the yield on benchmark government debt climbed. The loonie was trading 0.5% higher at C$1.2965 to the greenback, or 77.13 U.S. cents, after trading in a range of 1.2899 to 1.3029.
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