Much to what will likely be dealer chagrin, wholesale prices are rising steadily as we approach the spring season.
According to the ADESA Canada Used Vehicle Price Index, which has been updated through January, wholesale prices rose on average by about 1.6 percent, compared to the last month of 2012.
Officials explained the index was up significantly after being adjusted for seasonality, reversing several months of declining values.
As for price movements, by segment, rates were “mostly flat” in January.
Specifically, midsize cars were up 1.7 percent ($170), full-size pickups rose 1.2 percent ($218), mid compacts were nearly unchanged, up 0.3 percent ($26) and compact SUVs fell 1.1 percent ($136).
On the other hand, minivan prices rose substantially, increasing by 16.5 percent ($1,365).
Midsize SUVs reversed a significant rise from December to end down 15.2 percent ($2,815).
And as wholesale prices rise, it looks like sales are off to a bit of a rocky start for 2013.
For the first month of 2013, overall light-duty vehicle sales in Canada were down 2.2 percent over January 2012. The SAAR is currently tracking at 1.7 million units, ALG officials shared.
In January, passenger car sales fell 5.2 percent over January 2012, with 39,009 units sold last month. Meanwhile, light truck sales slipped a mere 0.1 percent to 56,297 units.
But these slowing sales are no indication of the nation’s sentiments.
ALG analysts also reported the Canadian economy “continued to soldier on in January”,” and consumer confidence rose 5.1 points to reach 83 (highest level since June 2011).
ALG shared this reflects a “new year optimism.”