Prices drop by over half percent at Canadian auto auctions last week
Last week, prices dropped by 0.66% at the auto auctions in Canada, according to Canadian Black Book, which reported car segment prices dropped by 0.43%, and trucks/SUV segment prices fell by 0.89%.
None of the segments CBB tracks saw values rise.
Once again, the larger segments saw prices drop the most, even as winter weather approaches.
Compact vans saw the biggest drop, with a decline coming in at 1.97%. Next up were the midsize crossover/SUVs with a drop of 1.73%.
Cars overall saw a smaller decline then trucks, dropping by an average of 0.43%. Sporty cars performed the best, dropping by 0.07%, followed by compact cars with a decline of 0.19%. Subcompact cars fell by 0.21%.
Near-luxury cars saw prices drop by 0.73% and midsize cars dropped by 0.72%., two of the highest declines for cars last week.
For the week ending Nov. 11, truck prices fell by almost a full percent at 0.89%. All segments showed a small downturn. Compact vans dropped the most by 1.97%. Midsize crossover/SUVs also saw a significant decline of 1.73%, followed by compact crossover/SUVs down by 1.67%.
The minivan (down 1.43%), small pickup (down 1.18%) and subcompact luxury crossover (down 1.13%) also saw hefty drops.
The Canadian market continued to decrease in price and the overall decrease was larger than the historical average, according to CBB.
“Supply remains low with decreasing demand for vehicles at auction on both sides of the border. Upstream channels continue to tap supply before it can be available to wholesale markets,” CBB analysts said in the weekly report. “Many segments saw a change in average value of more than $100 this week as the truck and SUV segments fell the most.”
Conversion rates were lower than normal. Sell rates were as low as 6.6% and as high as 42%. But the majority fell into the less-than 30% pool.
“Last week we saw less sellers dropping floors, which has been contributing to lanes with lower sell rates,” CBB said.
On the retail side of the market, the 14-day moving average sat at about $37,900.
Across the border, U.S. prices in the lanes dropped a bit more than in Canada.
In the U.S., overall, car and truck segments decreased by 1.55% last week. The prior week, they decreased by 0.95%.