Wholesale Price Movement Proves Slight For January
Wholesale price movement for the first month of 2015 for ADESA Canada and Manheim Canada was minor, showing little change from the end of last year.
Based on numbers provided by the two companies, there appear to be very slight shifts in overall pricing as Manheim has reported a 0.3 percent decrease in its January index, while ADESA Canada reported a 0.3 percent month-over-month increase in overall wholesale prices in January.
ADESA attributes its increases in part to a second month of consecutive spikes in consumer confidence, up 2.7 points to reach 107, fueled by a slightly lower Canadian unemployment rate (0.1 percentage point drop to 6.6 percent) and a decrease in national gas prices ( 5 cent drop, per liter, to 91 cents at the end of the month) despite the Canadian dollar’s five-year low of $0.7813 compared to the United States’ dollar at the end of the month.
Despite its slight overall pricing decrease compared to December, Manheim’s January numbers were still up 7.3 percent year-over-year. Broken down into segments, the company reported that its monthly declines came from compacts (-5.1), full-size vehicles (-28), pickups (-0.1), sports cars (-12.4) and vans (-3.9) while luxury, midsize and SUVs all experienced month-over-month increases.
ADESA experienced similar results in its specific denominations, seeing the biggest drop in pricing with minivans, which fell 8 percent, or $792, in January, followed by compact SUVs (4 percent, $502). The company saw gains in its other categories, most notably reflected by a 17 percent, or $2,234, increase in price for midsize SUVs, followed by fullsize pickups (7 percent or $1,249), midsize vehicles (5 percent or $435), and mid-compact vehicles (4 percent or $358).
Overall, ADESA reported that light-duty vehicle sales increased 3.4 percent year-over-year while passenger car sales fell 4.2 percent, contrasted by an 8.2 percent increase in light truck sales.