Canadian wholesale car prices depreciate more than trucks, SUVs for first time in weeks
The Canadian wholesale, vehicle market depreciated by about a half a percent last week, according to the latest report from Canadian Black Book.
Overall wholesale prices fell by 0.52% last week. Cars saw a more significant decline, dropping by 0.70%, while trucks and SUVs fell by 0.34%. None of the segments CBB tracks saw any price increases.
The largest declines were seen in the subcompact cars (down by 1.27%), followed by sporty cars with depreciation of 1.24%.
The best performing segments for cars were the premium sporty cars, down 0.08%, and the compact cars with a 0.52% matching the average for the week.
For trucks, the compact vans and small pickups saw the highest depreciation. Oddly enough, the small pickup segment is often one of the slowest to experience depreciation.
“The Canadian market continued to decrease, with declines around double than the historical average,” CBB said report. “Supply is building with decreasing demand for vehicles at auction on both sides of the border.”
That said, upstream channels continue to tap supply before it can be available to wholesale markets.
Most segments saw a change in average value of more than $100, and car segments fell the most — which hasn’t been seen in many weeks, according to CBB data.
Conversion rates were quite low this past week with some observed sell rates as low as 11% and as high as 59%. Most were between 25-45%.
“Last week we saw less sellers dropping floors, which has been contributing to lanes with lower sell rates,” CBB said.
In the U.S., overall, car and truck segments decreased 0.49% last week; the prior week, they decreased by 0.63%.