Used vehicle market prices decline similar to prior week

The Canadian used wholesale market’s decline in prices was a little more than the prior week, at -0.51% for the week ending on June 28 rather than the prior week’s -0.48%. However, it is still a far cry from the 2017-2019 average of -0.10% for the same period. 

Cars dipped slightly more this time around to -0.28% from last week’s -0.21%, while truck/SUV segment prices improved in decline at -0.66% compared to the prior week’s -0.73%. The car segments with the largest declines were sub-compact cars and compact cars. For trucks/SUVs, it was full-size vans and mid-size crossovers/SUVs.

“The Canadian market is continuing its decline from the previous week,” said CBB. “Before supply appears in the wholesale market, upstream channels have been tapping in early to access them first. This has led to an increase in inventory, driven by high demand on both sides of the border for vehicles at auctions.”

In the car category, the segments that decreased the least were sports cars (-0.12%), premium sports cars(-0.15%), full-size cars (-0.16%). The biggest decreases, as previously mentioned, came from sub-compact cars (-56%), compact cars (-0.53%), and prestige luxury cars (-0.47%).

For trucks/SUVs, the largest declines came from full-size vans (-0.96%), mid-size crossovers/SUVs (-0.95%), sub-compact luxury crossovers (-0.92%), and compact crossovers/SUVs (-0.85%). It should also be noted that full-size crossovers/SUVs and compact luxury crossovers/SUVs experienced the same decline (-0.60%).

The average listing price for used vehicles, as per the 14-day moving average, was at $34,000 — based on around 220,000 used vehicles listed for sale on Canadian dealer lots, according to CBB.

In the United States, they said the market depreciation rate continues to surpass pre-pandemic seasonal trends. “Currently, the rate of depreciation has consistently hovered around half a per cent per week throughout most of June,” said CBB.