Used wholesale market prices take a dive

The decline in Canadian used wholesale market prices, for the seemingly short period it was less steep, has taken another dive — now to -1.06% for the week ending on Jan. 6, according to Canadian Black Book’s latest Market Insights report.

That compares to the prior week’s -0.54% and the 2017-2019 average of -0.35% for the same reporting week. The market’s steeper decline this week was perhaps less affected by the car segment, which fell -0.67% compared to the prior week’s -0.53%, than the truck/SUV segment. Prices for that category declined -1.45%, compared to the previous reporting period’s -0.55%. Not a single segment’s values out of the 22 have increased for the week.

“The Canadian market continued to decrease, and the overall decrease increased after the holidays with declines around three times the historical average,” said CBB in its update. “Supply is building 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.”

In the United States, the car and truck segments were down -0.68% last week and -0.68% the prior week. The volume-weighted car segments declined -0.49%, versus the previous reporting period’s -0.39%. And the truck segments decreased by -0.77%, which is less than the prior week’s -0.80%.

Back in Canada, the most significant decline in the car segment came from sub-compact cars(-1.49%), followed by full-size cars (-1.42%) and prestige luxury car (-0.92%). Luxury cars and near-luxury cars each decreased -0.69%. As for the segments with the least decreases, those were premium sports cars (-0.29%) and sports cars (-0.59%).

As for trucks/SUVs, the largest depreciations came from full-size luxury crossovers/SUVs (-2.79%), full-size Crossovers/SUVs (-2.35%), and mid-size crossovers/SUVs (-2.02%). Also worth noting are compact crossovers/SUVs (-1.89%), sub-compact crossovers (-1.61%), compact luxury crossovers/SUVs (-1.55%), and mid-size luxury crossovers/SUVs (-1.52%).

You can read the full report here.

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