While many were counting down from 10 on New Year’s Eve, the used-car industry in Canada was counting up. To 21, that is.
The final week of 2021 marked the 21st consecutive time that wholesale vehicle prices increased in Canada, according to Tuesday’s CBB Automotive Market Update from Canadian Black Book.
Wholesale vehicle prices were up 0.32% last week, compared to a 0.25% hike the prior week. The average movement for the same week of 2017 through 2019 was a decrease of 0.35%, CBB said.
CBB found increases in 16 of the 22 segments it tracks.
“The Canadian wholesale market continues to increase yet again. This past week, almost all segments reported increasing values,” the company said in the report.
“Supply remains low while demand continues to be strong on both sides of the border. Upstream channels continue to tap supply before it can be available at physical auctions”
The growth in car segment prices was particularly noteworthy, as they climbed 0.52%, according to the report. That beat the prior week increase of 0.28% and the 2017-2019 average, which was a drop of 0.32%.
Truck and SUV prices were up 0.13% last week, slowing from the 0.23% uptick the prior week. During the 2017-2019 time frame, the average movement was a dip of 0.39%.
The segments with the most growth were the compact vans (up 1.49%), near-luxury cars (up 1.37%) and full-size vans (up 1.33%), CBB said.
The most significant decrease was in the full-size pickup category, where prices fell 1.08%.
Sporty cars were next (down 1.00%), followed by full-size crossovers/SUVs (0.56%).
The last week of the month capped what ended up being a “historical high” for the Canadian Black Book Used Vehicle Retention Index, which came in at 158.5 points to close December.
That beat November’s reading by 5.9 points. It also marked a 42.2% year-over-year spike, beating the December 2020 reading of 111.5, CBB said.
Though the overall increase slowed, wholesale vehicle prices in Canada have now climbed for 18 consecutive weeks, according to Canadian Black Book.
In the CBB Automotive Market Update released Tuesday the company said overall wholesale values were up 0.45% last week, compared to a 0.74% uptick the week before. The average for the same week during the 2017-2019 time frame was a decrease of 0.30%.
There was a 0.38% hike in car segment values, up from a 0.34% increase the week before. The 2017-2019 average was a dip of 0.35%. Cars have increased in value for 16 consecutive weeks, according to CBB.
The increase in truck/SUV prices slowed from 1.13% to 0.52% last week, and the 2017-2019 average was a decrease of 0.26%. SUV/truck prices have climbed for 18 consecutive weeks.
Values were up in 19 of the 22 segments that CBB tracks, including the compact van, which climbed the highest (3.17%). Next up was the full-size van (up 2.98%), with the subcompact crossover in third (up 1.27%), according to CBB.
Among the car segments, the largest increase was for the subcompact car, whose values were up 1.25%.
Low inventory remains the catalyst for the uptick in values, CBB said.
“Supply remains low while demand continues to be strong on both sides of the border,” the company said in the report. “Upstream channels continue to tap supply before it can be available at physical auctions.”
Like the 1970s Canadiens or 1980s Islanders, the wholesale vehicle market in Canada is on a streak.
Wholesale prices have now climbed 11 straight weeks, according to Canadian Black Book, which said in a market update that values were up in 21 of 22 segments for the week ending Friday.
Specifically, there was a 0.60% increase in overall wholesale values last week, CBB said. That follows a 0.64% uptick for the week ending Oct. 15.
For the same week of 2017 through 2019, the average change was a decline of 0.37%.
There was a 0.69% lift in car segment values, versus a 0.68% increase the week before, with the 2017-2019 average being a decline of 0.44%.
The strongest increase among the car segments was for the near-luxury car segment, which was up 1.80%, according to CBB.
Truck prices were up 0.51%, compared to a 0.59% hike the prior week and the 0.30% decline for the 2017-2019 average. The most significant hike was for the subcompact luxury crossover, whose prices climbed 1.37%.
Each of the 13 truck segments showed price gains. Overall, the only segment of the 22 in CBB’s data that showed a decrease was the prestige luxury car segment (down 0.16%).
It was still practically the heart of summer the last time used-car prices didn’t rise in Canada.
Pushed by softening inventory levels, wholesale vehicle prices in Canada have now climbed nine straight weeks, according to Canadian Black Book.
Calling the market “red-hot,” CBB said in latest weekly report, “All vehicle segments saw prices rise for the week, as lack of inventory continues to be the main driver for these wholesale price increases with both new- and used-vehicle inventory continuing to decline.”
Car segments showed particularly strong growth, rising 0.84% last week, CBB said its update. That compares to a 0.66% increase the prior week and an average movement of -0.19% for the same week during 2017 to 2019.
Truck and SUV prices climbed 0.53%, versus a 0.49% hike the prior week, according to CBB. The 2017-2019 average for the same week was a decline of 0.20%.
Overall, the market was up 0.69% in Canada. Prices had climbed 0.57% the previous week, and the average for the 2017-2019 time period was a decline of 0.19%.
Looking at all segments, the top five price gains were all car segments.
Full-size cars topped the list with a 2.26% hike, midsize cars were in second with a 1.30% gain and near-luxury cars were in third (up 1.2%), CBB said.
Prestige luxury cars in fourth with a 1.03% hike, and compact cars were No. 5 and up 0.96%.
The most significant growth on the truck side was for the compact crossover/SUV segment, which climbed 0.85%, according to the report.
Of note, all 13 truck segments have now climbed for six straight weeks, CBB said.
The company had more to say on wholesale supply later in the report.
“Supply remains low while demand continues to be strong on both sides of the border. Upstream channels continue to tap supply before it can be available at physical auctions,” CBB said.
And even within those auctions, dealers are still quickly grabbing those vehicles. CBB observed conversion rates as high as 85% last week.
"There aren’t tons of low-mileage, good-condition vehicles, but those that make it to the lanes are sparking a lot of bids," the company said.
Again, much of the stronger quality units are purchased in upstream channels, thus impacting the supply and quality of units in the lanes.
On the used retail side, the CBB Listing Volume Index has fallen to 0.89. CBB notes that, “dealers and OEMs (deal) with depleting inventory levels for both new and used vehicles. Over the past 16 weeks, the used-vehicle listing volume has seen significant declines.”
July was an interesting month for wholesale vehicle prices in Canada.
On one hand, Canadian Black Book’s Used Vehicle Retention Index was up 20.3% year-over-year, and was off a mere 0.3% from June, which was the 10th straight month of all-time highs in the index.
But perhaps more notable is the fact that the month-over-month decline was the first such dip in over a year, CBB said, and snapped the aforementioned 10-month record streak.
Specifically, CBB said in a news release, the index came in at 124.7 last month, versus June’s 125.1.
The last time the index had a month-over-month drop was June 2020.
“At some point, the incredible ascent of used values had to peak after what has been unprecedented growth,” CBB vice president of sales Yolanda Biswah said in the release.
“That said, given the depth of disruption caused by the global chip shortage and other supply chain issues, we may still see some value increases,” Biswah said.
While the degree of increase was lower, it was a steadily strong week for the Canadian wholesale vehicle market, according to Canadian Black Book, which found overall prices were up 0.01% for the week ending July 2.
That compares to
Read more
Wholesale vehicle prices have increased for 15 consecutive weeks in Canada, according to the Canadian Auto Market Update released Tuesday by Canadian Black Book.
Last week, used prices were up 0.35% overall, with trucks/SUVs up 0.36% and cars were up 0.34%, CBB said.
The gain in car segments was particularly steeper, as the prior week they were up 0.16%. Trucks/SUVs were up 0.48% the week ending June 4, while the overall movement was 0.32%, according to the CBB data.
Last week also compared favorably to recent historical averages.
The average movement for same week during the 2017-2019 timeframe was a decrease of 0.12% overall, a drop of 0.11% and a 0.12% decline for cars, CBB said.
Looking at some individual segments, the strongest gain in the car segments last week was for the sporty cars (up 0.70%). The two car segments whose values fell were compact cars (down 0.30%) and subcompact cars (down 0.03%). The rest climbed.
The top truck and overall segment was the full-size pickup, which was up 1.00%. The two truck/SUV segments whose values dipped were minivans (0.12%) and subcompacts crossovers (0.06%). The rest were up.
Used-car prices also showed continued gains on the retail side, CBB said. The report indicates that the 14-day moving average climbed to approximately $26,600 last week. The 28-day moving average was also up.
There was a slight uptick in active used-vehicle retail listing volume, which came in a hair above 140,700 units last week, according to the report.
“Active listing volume began showing positive movement in early April and we are now seeing a continuation of that trend,” CBB said.
The new-car production logjam is impacting Canada’s used-car market, too.
Canadian Black Book said in an analysis Tuesday that wholesale vehicle prices last week hit record weekly gains for both car and truck segments.
The overall market was up 0.58% week-over-week, compared to the prior week’s gain of 0.43% and the 2017-2019 average hike (for the same week) of 0.09%, according to CBB.
Car prices climbed 0.39%, up from a 0.30% increase the prior week and the 0.01% average for 2017-2019
There was a 0.76% increase for truck/SUV segment prices, versus the 0.55% prior-week game and up from the 0.19% average hike for 2017-2019,
Every truck/SUV segment and every car segment showed gains for the week, CBB said.
The most significant on the car side was for the full-size car segment (up 1.42%). Within trucks/SUVs, the full-size crossover/SUV had the strongest hike at 1.51%.
“The Canadian wholesale market strengthened further this week with truck, SUV, and car values all moving further in the positive week-over-week territory. … Inventory remains tight while demand continues to grow, leading to these gains in value,” CBB said in the analysis looking back at last week's wholesale activity.
“Sell rates remain strong this week as buyers continue to demand inventory and are appearing more willing to adjust to sellers' expectations especially in the truck segment,” CBB added. “This high demand at auctions is expected to continue this week as the warmer weather increases consumer demand, causing dealers to continue to replenish used inventory.”
Wholesale vehicle prices in both car and truck/SUV segment groups have now declined 15 straight weeks, with the drop in car prices a bit higher than seasonally expected last week and truck declines aligning with typical trend lines.
That’s according to the COVID-19 Weekly Automotive Market Update that Canadian Black Book released Tuesday.
“As the industry approaches the time of year when retailers will begin to stock up on product for the spring, it remains to be seen what impact pandemic-related uncertainty will have in the marketplace, and on the mindset of spring car shoppers,” CBB said.
Overall wholesale values were down 0.24% last week, compared to a 0.40% decline the week before and slightly higher than the 0.22% 24-month average, according to the report.
Car segment prices fell 0.29%, improving from a 0.62% decline the prior week but higher than the 0.22% 24-month average decline.
The premium sporty car was the only car segment to increase (up 0.03%), while the compact car had the steepest decline (0.68%)
Truck and SUV prices softened 0.19%, versus a 0.18% drop the week before and a 0.21% 24-month average decline. The majority of truck segments were down, with the midsize crossover/SUV showing the most softness (down 0.51%), CBB said.
The segment with the most growth — and the only to see “any real material gains” — was the compact vans, where prices increased 0.30%, according to CBB.
As far as the sales rate in the auction lanes, last week’s rate (approximately 50%) than pre-pandemic levels (in the neighborhood of 70%). However, CBB does anticipate an improvement in sales rates with the spring selling season on tap.
“Some auctions are still not allowing potential bidders to walk the lots and preview vehicles prior to the sale, due to the various government restrictions,” CBB said in the report. “This is of course a necessary reality; however, it does not help to create confidence in the product for potential buyers. Once some auctions with this restriction can again allow buyers to walk the lots, this is expected to increase sales rates and bidding activity.”
The Canadian Black Book Used Vehicle Retention Index was at a record high in December, beating the prior all-time high — set just a month earlier — by 0.8 points, and eclipsing the prior-figure figure by 3.1 points.
That’s according to the latest Canadian Auto Market update released Tuesday by Canadian Black Book, which indicated its Used Retention Index (which is seasonally adjusted) came in at 111.5 for December.
This year has started with some price slowdown, but take that with a grain of salt.
Car segments had a weekly raw adjustment (not seasonally adjusted) of 0.67% last week, with truck segments down 0.51%. The latter was the largest drop-off since mid-May.
“As noted in recent weeks, our weekly market adjusted values have been trending downwards, which has been the case for a number of months,” CBB said in the report. “However, when seasonality is considered in the analysis, as it is in our Used Vehicle Retention Index, the retained values for 2- to 6-year-old vehicles have been trending upwards.
“Another way to think about this is to consider that values have not declined by as much as they normally would at this time of year; however, trends are approaching more normal levels this week.”
CBB would also point out that the opening weeks of a year, or even January itself, are necessarily sign of what’s in store for the rest of the year.
“Canadian Black Book does however continue to expect slow price declines, in the first quarter,” the company said.
It expects that the dip will be “milder” than typical seasonal depreciation, before an extended recovery and stability, “depending on the general state of the economy and demand for vehicles” CBB said.
“It is our expectation that the car segments will continue to lag behind in value retention trends, as compared to the truck segments, which is purely a function of market preference,” the company added.
