MARKHAM, Ontario –

The rise in Canadian wholesale vehicle prices last week was not as strong as the prior week’s gain, but the change was much more positive than what happened the same week in prior years.

That’s according to the latest Canadian Auto Market Update from Canadian Black Book, which also detailed continued tight supplies in the wholesale markets and both U.S. and Canadian buyers clamoring for used vehicles.

That report indicated there was a 0.45% lift in wholesale prices the week ending Friday, compared to a 0.62% gain the week ending April 9.

However, the average change for the same week from 2017-2019 was a decrease of 0.08%.

“The Canadian used vehicle market experienced another week of strong wholesale price increases,” CBB said in the report.

“The truck/SUV segments continued to lead the market with above average week-over-week price increases, although not as strong as the weekly increases seen in recent weeks,” it added. “Cars also had a strong week with a solid up-tick in prices well above historical average increases.”

Car segment prices were up 0.37% last week, compared to 0.39% hike the prior week and a 0.09% for the 2017-2019 average.

Midsize cars showed the most growth at 1.09% and the only car segment to show a drop was prestige luxury cars, which fell 0.17%.

Truck and SUV segment prices climbed 0.53%, versus a 0.84% increase the prior week and a 2017-2019 average change of -0.07%.

Full-size pickups showed the most growth (1.21%), and full-size luxury crossovers/SUVs was the sole decliner (0.43%).

Turning to wholesale supply, CBB said conditions are tight. Demand is “extremely high” for both the U.S. and Canada.

“Upstream channels continue to tap supply before it can be available to the wholesale market,” CBB said.

Analysts added: “Sell rates remain strong this week as buyers continue to demand inventory. They are willing to adjust to sellers' expectations, especially in the truck segment. Some observed sell rates were as high as 75% this week – low supply and high demand keep any saleable vehicle from returning to the auction block a second time.

“This high demand at auctions is expected to continue this week as the lack of new vehicle supply continues to increase demand for used vehicles,” they said.

And further complicating supply is that sellers are motivated to export wholesale inventory to the U.S., which makes it difficult for Canadian auctions to meet demand, CBB said.