In September, Canadian Black Book’s Used Vehicle Retention Index increased sequentially after three months of declines.

Last week, however, Canadian wholesale vehicle prices reached a milestone of a different sort.

The 0.56% drop marked the most significant decline in used-vehicle values in more than a year and a half, CBB said in its most recent weekly Market Insights report, which covered wholesale prices for the week ending Friday.

The company attributed the decline largely to declines in mainstream car segments as well as compact crossovers and midsize crossovers

The overall market’s decline compared to a 0.31% drop the prior week and a 0.37% average decline for the same week of 2017 through 2019.

Car segments were down 0.39% last week, after a 0.18% drop the prior week, and truck/SUV prices fell 0.72%, following a 0.43% decrease.

By segment, the most significant decrease was for the midsize crossovers, which were down 2.3%. Compact crossovers weren’t far behind, falling 2.15%. Compact vans were down 1.84% and subcompact crossover/SUV prices were off 1.69%.

Midsize cars (down 1.13%), sporty cars (down 1%) and full-size cars (down 0.93%) had the largest declines among the car segments.

Only one car segment (premium sporty, up 0.08%) and one truck segment (subcompact luxury crossover, up 0.44%) showed gains last weke.

“The Canadian wholesale market decreased further last week. The overall decreases were larger than the prior week’s declines,” CBB said in the report. “Supply remains low with demand for more recent and clean condition vehicles on both sides of the border. Upstream channels continue to tap supply before it can be available to wholesale markets.

“Conversion rates were similar to last week. Some observed sell rates were as high as 77% but most were in the 40-50% range,” the company added. “Last week we saw less sellers dropping floors, which has been contributing to lanes with improved sell rates.”

Going back to the monthly analysis, CBB shared in mid-October that Used Vehicle Retention Index came in at 160.3 in September. It was up 0.3% from August, ending a three-month string of sequential declines, and climbed 20.8% year-over-year.

Following a trough of 100.5 during 2020, the index went on a “run of unprecedented growth” from late summer 2020 to March of this year, where it peaked at 165.

“After the crazy ride the Index took from 2020 to March of this year, it seems as if prices have somewhat stabilized,” said David Robins, who is the principal automotive analyst and head of Canadian vehicle valuations at Canadian Black Book, in a release.

“We are seeing more normal fluctuation month-to-month. That said, this stabilization is occurring at a much higher price point compared to past years,” he said.