ADESA Canada: Moderate Movement in Wholesale Prices
In the latest reading of the ADESA Canada Used Vehicle Price Index, wholesale value conditions in Canada appeared to be fairly static during October.
Specifically, ADESA’s data — powered by ALG Canada — indicates that October’s index showed a 0.1-percentage-point hike on a seasonally adjusted month-over-month basis. Officials noted that on average, wholesale prices were down roughly 0.7 percent versus September values.
Breaking it down by segment, the mid-compact segment was down 10 percent in October, as was the minivan segment. Meanwhile, the midsize segment fell 3 percent and full-size pickups dipped 1 percent.
Midsize SUVs climbed 7 percent and compact SUVs jumped 4 percent.
“The Canadian market is acutely exposed to commodity prices and the financial sector — the parts of the global economy feeling the most pain from the European debt crisis,” officials explained.
“This was clearly illustrated in the month of October as consumer confidence declined 3.3 points to 71.8 — the lowest level since May 2009 — the unemployment rate rose 0.2 percentage points to 7.3 percent and the Canadian dollar plummeted to a yearly low of $0.947 against the U.S. dollar on Oct. 4,” they added.
However, there was still a 2.1-percent year-over-year hike in new-vehicle sales for the month, officials pointed out. So far in 2011, sales have climbed 1.5 percent.
Among vehicle categories, there was a 6.9-percent year-over-year improvement in truck sales during October. Through 10 months, there have been 753,178 truck sales so far this year, a 4.6-percent gain.
On the opposite end of the spectrum, there was a 4-percent dip in car sales during October. And year-to-date, there have been 596,651 car sales, which represents a 2-percent decline.