MISSISSAUGA, Ontario -
Although overall Canadian wholesale prices showed a month-over-month upswing during October, four of six segments listed by ADESA Canada experienced weaker resale values in the auction market during the month, according to the latest ADESA Canada Used Vehicle Price Index report.
Specifically, ADESA’s data — powered by ALG Canada — indicated that the index during October improved 0.3 percentage points compared to September on a seasonally adjusted basis.
But this news comes with a caveat.
“As shared last month, we closed out 3Q10, with the number of units going through auction in September remaining at or near August levels, which helped to provide price support to four out of the six segment classes,” officials explained.
“However, the number of units going through auction in October dropped by approximately 29 percent from September levels helping to mitigate what could have been a more severe weakness in resale prices,” they added.
Looking more in-depth at the data, officials also pointed out: “As expected and experienced last year in October, resale prices weaken and volume drops as we close out the year.”
Breaking down October’s data in more detail, the mid-compact segment showed the heaviest month-over-month price decline, as their values fell 11 percent.
The second-heaviest dip was in the compact SUV segment (down 6 percent), with the midsize segment falling 5 percent from September and the minivan segment off 3 percent.
Meanwhile, full-size pickups posted a “minimal’ gain and midsize SUVs were up 2 percent.
Speaking of trucks, officials noted that there was a 13.6-percent year-over-year hike in new sales for trucks. This gain aided in spurring 1.4-percent growth in overall new-vehicle sales, according to the company.
Looking forward, officials concluded: “ALG forecasts further price softening as we close out 2010 due to seasonality, used inventory levels, new-vehicle year-end programs and continuing economic pressures.”