Following analysts' predictions as used supply continued to tighten this spring and early summer, the updated ADESA Canada Used Vehicle Price Index powered by ALG showed a slight rise in June after being adjusted for seasonality.

According to the Index, wholesale prices rose an average of 0.2 percent from May rates.

That said, in all segments, the average price movements were negative.

“This is typical as June has one of the strongest negative seasonality's of the year,” officials noted.

Specifically, full-size pickups has the largest decline at 5.4 percentm or $962, followed by compact SUVs with a 4.7-percent, or $582, decline.

Minivans (4.2 percent or $380), midsize cars (3.2 percent or $308), midsize SUVs (1.8 percent or $279) and mid compact cars (1.1 percent or $83), all saw declines this past  month, as well.

As for this month, officials said, “July will typically have negative price movements as well, though at roughly half the levels of June declines.”

It will be interesting to see how the price index levels out for July, though, as ALG’s July/August Industry Report states that “used market supply is forecasted to rise slightly.”

In the July/August report, analysts also predicted that this rise in supply may bring down residuals by 0.1 percent, with segment impacts varying from -0.2 percent to 0.2 percent.

Analysts shared that the compact utility, premium executive and subcompact utility segments display the largest negative impacts at -0.2 percent.

On the other hand, the full-size commercial, sporty and premium roadster segments show a positive impact of 0.2 percent.
 

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