ADESA Canada: Another Wholesale Decline, but Conditions Improving
Though auction prices in Canada dipped again in June, the decline slowed down a bit, and it appears that the economic outlook in the country could be getting better, according to the latest ADESA Canada Used Vehicle Price Index report.
Specifically, ADESA’s data — powered by ALG Canada — indicated that the index was down about 0.3 percentage points month-over-month in June on a seasonally adjusted basis.
“Wholesale prices were down 4.1 percent, a smaller decrease compared to the 6.2 percent decline from April,” officials pointed out.
“While the global economy struggles to find its footing, the recent solid gains in employment and gross domestic product along with accompanying strength in wages and salaries are key indicators of Canada returning to long-term economic stability,” they added.
Reflecting this trend was the 6.6-percent gain in Canada’s new-vehicle sales, which was pushed by “lucrative incentive programs,” officials shared.
Additionally, there was about a $0.05/liter decline in national fuel prices during the month, they added.
Breaking the wholesale market down by segment, officials pointed out that all vehicle categories fell, marking the second straight month this has happened.
That said, the slowdowns eased in all segments besides the full-size pickup class (down 6 percent).
The heftiest drop-off was in the compact SUV segment (down 9 percent). The decline for mid-compacts slowed modestly to 2 percent and the drop-off for midsize units slowed a bit to 4 percent.
“Minivan and midsize SUV had the largest discrepancies compared to their previous values, coming in at 3 percent ($814) and 2 percent ($1,303) respectively,” officials noted.