Wholesale vehicle prices fairly steady last week in Canada
After falling by an average of over 1% the week prior, wholesale vehicle price depreciation was steady the week ending Jan. 13, according to the latest report from Canadian Black Book.
The report said prices last week fell 0.51%. In the last week of 2023, they depreciated 0.55%.
As for the past week, CBB said the drops were around 50% higher than the historical average.
Cars saw drops in prices of a higher 0.59%, while trucks and SUVs saw a less significant drop of 0.42%.
Subcompact crossovers declined the most with a drop of 1.74%, followed by the subcompact luxury crossover segment with a drop of 1.23%.
Among the car segments, the luxury cars performed the best with an average of only 0.02%, followed by premium sporty cars with a drop of 0.33%.
Dropping the most were the compact cars, down by 1.11%. Luxury cars also dropped over 1%. (down 1.01%).
Trucks performed a bit better this past week, although all segments saw some type of depreciation. The subcompact crossover drop of 1.74% was the largest, followed by subcompact luxury crossovers (down 1.23%) and minivans (down 1.03%). On the other hand, full-size vans (0.09%) and compact vans (0.12) had the best week among the larger segments.
“Supply is building with decreasing demand for vehicles at auction on both sides of the border,” CBB said in its weekly report. “Upstream channels continue to tap supply before it can be available to wholesale markets.”
Most segments saw depreciation of over $100 over the course of the week.
Sell rates were as low as 3% and as high as 70%, but most were between 20-40%, according to CBB data.
“Last week we saw less sellers dropping floors, which has been contributing to lanes with lower sell rates,” CBB said.
In the U.S, wholesale vehicle prices dropped by 0.63%, slightly less than the prior week’s decline of 0.68%.
On the retail side of the market, the average listing price for used vehicles in Canada was down a bit week-over-week. The two-week moving average sits at about $37,600.