According to Canadian Black Book’s (CBB) Canadian Auto Market Update, buyers continue to show caution amidst inflated prices and low inventory levels, causing the Canadian used wholesale market to remain relatively flat this week.
Drops were seen in both the Car (-0.07%) and Truck/SUV (-0.06%) segments. The Sporty Car segment had the largest price increase (+0.28%) within the Car segment. Luxury Cars (-0.55%), Near Luxury Cars (0.40%) and Compact Cars (0.20%) were the only Car segments to have price declines for the week.
The Small Pickup segment saw the largest price increase overall (+0.46%), followed by Full-Size Vans (+0.31%) and Sub-Compact Luxury Crossovers (+0.29%). The largest drop in prices for the week came from Mid-Size Luxury Crossover/SUVs (-0.35%) and Full-Size Luxury Crossover/SUV’s (-0.33%).
The 14-day moving average listing price for used vehicles continued to climb, surpassing $27, 680, an increase of approximately $200 from the historic high seen last week. The number of active used listings continues its decline, with the 14-day moving average sitting at about 131,500 vehicles.
Days-to-turn increased by a day, up to 50 days this week, as the positive movement the industry experienced in April may be softening.
The CBB Listing Volume index currently sits at 1.04, a decline once again compared to last week. Although the index has noted a week by week decline, the overall listing volume remains much higher compared to the same time last year.
The Canadian wholesale market is showing signs of stabilizing, with just small decreases being observed. Supply remains low, and demand has cooled. According to the Canadian Black Book’s report, “more sellers are setting floors higher than the current market will bear, which has been contributing to lower sell rates and values this week.” The U.S. market exchange rate remains favourable for exportation, but cooling markets may cause some hesitancy amongst buyers.