Wholesale vehicle prices continue weekly depreciation of over 1%
Wholesale vehicle prices fell by over 1% last week, according to the latest weekly report from Canadian Black Book.
Specifically, the overall decline in prices was 1.06%, with the car segments showing slightly weaker depreciation, falling by 0.67%, while trucks and SUV prices dropped by 1.45%. None of the segments CBB tracks saw any value uptick last week.
The most impacted segments were full-size luxury crossover/SUVs, dropping by 2.79%, and the full-size crossover/SUV with a decline of 2.35%.
Highlighting movement within the car segments, the overall 0.67% was spread out across all nine segments. Subcompact cars dropped the most at 1.49%, followed by full-size cars at 1.42 decline, and prestige luxury cars with a drop of 0.92%. Both luxury cars and near luxury cars reflected a decrease of 0.69%.
Premium sporty cars had a decline of 0.29% and sports cars fell 0.59%.
For trucks, depreciation was a bit stronger last week. The largest depreciation was seen in the full-size luxury crossover/SUV segment (down 2.79%), full-size crossover/SUVs (down 2.35%) and mid-size crossover/SUVs (down 2.02%).
Compact crossover/SUVs saw a drop of 1.89%, and subcompact crossovers dropped by 1.61%, experiencing notable softening, as well.
“The Canadian market continued to decrease, and the overall decrease after the holidays with declines around three times the historical average,” CBB said in its weekly report.
And CBB’s analysts have found that wholesale supply is growing, but there has been a decrease in demand for vehicles at auction on both sides of the border.
Upstream channels continue to tap some of that growing Canadian supply before it can be available to wholesale markets.
Most segments saw a change in average value of more than $100 this week, and conversion rates were low.
According to CBB, sell rates were as low as 17% and as high as 65% but most were between 25-40%.
“Last week we saw less sellers dropping floors, which has been contributing to lanes with lower sell rates,” CBB reported.
In the U.S., car and truck segments decreased 0.68% last week; the prior week decreased by 0.68% as well.