MISSISSAUGA, Ontario -
Canadian used-vehicle prices increased modestly on a sequential basis during December, according to the latest ADESA Canada Used Vehicle Price Index. However, most segments included in the data were said to be soft.
Specifically, ADESA’s data — powered by ALG Canada — indicated that there was a 0.3-point upswing in the index for December compared to the prior month on a seasonally adjusted basis.
Minivans showed strength in December, as did full-size pickups, but the same couldn’t be said for the other segments.
Showing the heftiest decline was the mid-compact segment, which declined about 10 percent sequentially, officials noted. This segment had "significantly lower sales volume going through auction," they pointed out.

There was an approximately 5-percent drop for prices in the midsize segment as well as for compact SUV values.

There was a 4-percent month-over-month drop in midsize SUV prices. Sales volume for that segment was off by double-digits, as it was for other vehicle categories, as well.
And although there were positive economic factors abound in Canada, full-year Canadian resale prices were not solid during 2010, according to the analysis.
December’s unemployment level was down to 7.6 percent, officials noted. The S&P/TSX composite finished the year by hitting 13,443 — the last time it hit that level was more than two years ago — and this was instrumental in Canadians seeing their net worth improve, executives pointed out.
However, these factors didn’t’ keep full-year 2010 resale prices from being weak.
“Applying severe downward price pressure was the drive for new-vehicle market share and the drive to aid in keeping the economy moving, which for those who engaged took incentives to an all-time high,” officials indicated.
“Significant incentives were seen in the light truck segment in 2010, which helped propel the light truck segment to capture an unprecedented 54 percent of the new-vehicle market,” they shared.
Such strength for light trucks translated into more robust used prices for full-size pickups, as they showed a $92 per unit year-over-year gain.
The year-over-year softening in minivan sales, meanwhile, was among the sharpest. Prices, meanwhile, were up about 5 percent.
The midsize vehicle category saw its prices dip 11 percent, while the remainder of the segments saw their values fall single digits, officials noted.