ADESA Canada: Auction Prices Show Unusual Softening
MISSISSAUGA, Ontario — The ADESA Canada Used Vehicle Price Index declined sequentially for the third consecutive month, as overall auction prices showed a larger than seasonally expected drop.
Specifically, ADESA's data — powered by ALG Canada — indicated that the index fell 1.2 percentage points compared to November.
"Another consecutive monthly decline in resale prices can be attributed to dealers' new-vehicle inventory being back to normal levels and to both diminishing purchasing power being driven by increases in the average debt load of the Canadian consumer," officials explained.
December's unemployment rate in Canada — which remained static at 8.5 percent even though some economists had projected job growth — didn't exactly soothe the burden on consumers, either, officials noted.
"More of the same in the U.S., where unemployment held in at 10 percent with 85,000 jobs lost," officials suggested. "CY2010 holds for many OEMs a year of heightened levels of off-lease vehicles which will continue to drive home the necessity and value for out-of-the-box thinking when remarketing off lease vehicles."
Breaking it down, there were drops across all segments, with the midsize segment (down 9.1 percent) and mid compact segment (down 7.5 percent) slowing down the hardest.
Compact SUVs, meanwhile, were off 7.7 percent and minivan SUVs fell 6 percent, followed by full-size pickups (down 3.7 percent).
Midsize SUVs dipped modestly, as their values were off 0.3 percent.