MARKHAM, Ontario -

It was still practically the heart of summer the last time used-car prices didn’t rise in Canada.

Pushed by softening inventory levels, wholesale vehicle prices in Canada have now climbed nine straight weeks, according to Canadian Black Book.

Calling the market “red-hot,” CBB said in latest weekly report, “All vehicle segments saw prices rise for the week, as lack of inventory continues to be the main driver for these wholesale price increases with both new- and used-vehicle inventory continuing to decline.”

Car segments showed particularly strong growth, rising 0.84% last week, CBB said its update. That compares to a 0.66% increase the prior week and an average movement of -0.19% for the same week during 2017 to 2019.

Truck and SUV prices climbed 0.53%, versus a 0.49% hike the prior week, according to CBB. The 2017-2019 average for the same week was a decline of 0.20%.

Overall, the market was up 0.69% in Canada. Prices had climbed 0.57% the previous week, and the average for the 2017-2019 time period was a decline of 0.19%.

Looking at all segments, the top five price gains were all car segments. 

Full-size cars topped the list with a 2.26% hike, midsize cars were in second with a 1.30% gain and near-luxury cars were in third (up 1.2%), CBB said.

Prestige luxury cars in fourth with a 1.03% hike, and compact cars were No. 5 and up 0.96%.

The most significant growth on the truck side was for the compact crossover/SUV segment, which climbed 0.85%, according to the report. 

Of note, all 13 truck segments have now climbed for six straight weeks, CBB said.

The company had more to say on wholesale supply later in the report.

“Supply remains low while demand continues to be strong on both sides of the border. Upstream channels continue to tap supply before it can be available at physical auctions,” CBB said.

And even within those auctions, dealers are still quickly grabbing those vehicles. CBB observed conversion rates as high as 85% last week.

"There aren’t tons of low-mileage, good-condition vehicles, but those that make it to the lanes are sparking a lot of bids," the company said.

Again, much of the stronger quality units are purchased in upstream channels, thus impacting the supply and quality of units in the lanes. 

On the used retail side, the CBB Listing Volume Index has fallen to 0.89. CBB notes that, “dealers and OEMs (deal) with depleting inventory levels for both new and used vehicles. Over the past 16 weeks, the used-vehicle listing volume has seen significant declines.”