Only 3 of 22 vehicle segments show wholesale price gains in Canada
The Canadian wholesale market continued its slow but steady decline in values last week. According to Canadian Black Book data, wholesale prices dropped by an average of just over a quarter-percent.
Cars dropped by 0.40%, while trucks and SUVs dropped by 0.13%, continuing trends seen over the last few months.
Three out of 22 segments saw prices rise last week, after four saw increases two weeks ago.
The full-size crossover/SUV segment saw prices grow by 0.47%, followed by the compact crossover/SUV segment which increased by 0.26%.
The segments with the largest declines were the subcompact cars with a decline of 1.45%, followed by compact cars, down by 0.91%.
For cars, the segment with the smallest drop were the premium sporty cars, with a 0.09% drop. Sporty cars also performed well, dropping by only 0.10%.
The biggest value drop was seen in the subcompact car segment, followed by the compact cars (down 0.91%) and the prestige luxury cars (down by 0.88%).
For trucks, the segments with the biggest drops were the full-size vans (down 0.62%), subcompact luxury crossover (down 0.38%) and full-size pickups (down 0.37%).
“The Canadian market continued to decrease, with declines that were close to the prior week. Supply is building with decreasing demand for vehicles at auction on both sides of the border,” CBB analysts said in the weekly report. “Upstream channels continue to tap supply before it can be available to wholesale markets.”
Most segment price drops involved a change in average of less than $100 this past week. Cars, once again, saw larger declines than their larger counterparts.
Conversion rates were stable this past week, according to CBB, with most between 25-45%.
“Last week we saw more sellers dropping floors, which has been contributing to more lanes with higher sell rates,” CBB said.
The U.S. market continues to perform similarly, with wholesale prices dropping by an average of 0.17% last week.
Interestingly, car segments actually experienced an increase of 0.02%, halting a period of steady declines.
Truck prices dropped at auction by 0.24% last week in the U.S.