ADESA Canada: Used Values Down Across the Board
May wholesale values dropped more than 6 percent from April, according to the latest ADESA Canada Used Vehicle Price Index report, which indicated that every vehicle segment saw its auction price fall, something that has not happened in six months.
More specifically, ADESA’s data — powered by ALG Canada — indicated that the index showed about a 0.6-point month-over-month decline in May. This reflected the 6.2-percent drop in wholesale values from April, officials indicated.
They also noted that: “For the first time in 6 months, auction prices declined across all vehicle segments.”
The heftiest decline was spotted in the compact SUV segment, where values were off 10.17 percent. The next largest decline was in the minivan segment (down 10.13 percent), followed by the midsize SUV segment (down 8.79 percent).
Declines for the midsize segment (down 3.85 percent), mid-compacts (down 2.83 percent) and full-size pickups (down 1.89 percent) were much more moderate, officials noted.
Offering some more commentary, officials pointed out that while unemployment (7.4 percent) hit a more-than-two-year low, rising fuel costs and declines in consumer confidence counteracted that positive news.
“New-vehicle sales for May fell 3.8 percent from year-earlier levels, a drop caused mainly by double-digit declines at five of the six Japan-based automakers, which have struggled with parts supply shortages caused by the natural disaster in Japan,” they noted.
“It is interesting to note that monthly new-vehicles sales have returned to pre-recession levels only once since the economic recovery began, and that was in March of this year,” they added.