The latest automotive market update from Canadian Black Book reveals that average wholesale used vehicle prices in Canada are on the rise.
According to the report, prices climbed slightly this past week and are far better than the seasonal norms of 2017-2019 for the overall market. Both the car segment (+0.04) and the truck/SUV segment (+0.07%) were up this week, while the market was up 0.06% compared to the previous week.
“Last week’s price increase is also much improved compared to the same week last year, which is further evidence that dealers are beginning to stock up on products for spring,” said CBB in its report.
In the car segment, sports cars (+0.32%) and near-luxury cars (+0.31%) offered the largest increases, followed by the full-size car category (+0.25%). Compact cars managed an increase of 0.07%, and luxury cars were up 0.11%. However, the mid-size car segment led in declines for the week with -0.35%, followed by the prestige luxury car category with -0.21%. Subcompact cars were down 0.15%, and premium sporty cars declined 0.13%.
In the truck/SUV segment gains were seen in the sub-compact crossover category, which posted the largest increase for the week at 0.48%, followed by small pickups with +0.36%. Only two truck categories experienced “measurable declines” — the mid-size luxury crossover/SUV segment with -0.14%, and the compact van segment at -0.08%. Full-size pickups remained flat for the week.
As for retail prices and listing volumes, listing prices dipped last week — a continuation of the decline in average retail listing prices that started after peaking during the third week of January, according to CBB.
The seasonal trend heading into the spring season points to prices on the rise, although there is still uncertainty around the impact of pandemic restrictions, such as stay-at-home orders and social distance measures, and how these things may impact the spring selling season.
“Canadian Black Book continues to monitor the potential impact from the chip shortage on new vehicle inventory, which will most likely continue to push used vehicle demand up, and therefore bringing stronger retail prices in the short term,” said CBB, adding that a shortage of used product in the market remains, but that they see a steady increase in the number of vehicles listed for sale.