Wholesale vehicle depreciation in Canada picks up last week
Wholesale vehicle depreciation gained a bit of steam in Canada last week, with prices falling by an average of 0.70%, according to the latest Canadian Black Book weekly report.
Car segments once again saw larger declines, with a drop 0f 0.86%, CBB said. Trucks dropped by 055%.
None of the segments CBB tracks saw prices rise. The segment that saw prices drop the most was the full-size car category, with prices falling by 1.77%, followed by prestige luxury cars with a drop of 1.57%
The least impacted models in the car sector were premium sporty cars, down 0.02%, midsize cars down by 0.73% and near luxury cars, down 0.76%.
For trucks, albeit a smaller decline last week, all segment prices saw a drop. Those with the largest decline were small pickups, down 1.35%, and compact luxury crossover/SUVs, down 1.25%.
Other segments with larger drops were full-size pickups (down 0.80%) and full-size crossover/SUVs (down 0.69%).
“The Canadian market continued to decrease, with declines increasing slightly,” the weekly CBB report said. “Supply is building with decreasing demand for vehicles at auction on both sides of the border.”
Upstream channels continue to gobble up supply before it becomes available to the wholesale markets. Most segments saw a change in average value of more than $100 this week.
The car segments are now seeing the largest declines in the market.
“Conversion rates were decreasing this past week with some observed sell rates were as low as 10% and as high as 42% but most were between 20-35%,” CBB said. “Last week we saw less sellers dropping floors, which has been contributing to lanes with lower sell rates.”
In the U.S. last week, car and truck segments decreased by 0.26%. The prior week values decreased by 0.33%.