CBB Weekly Automotive Market Update 04/27/2022

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Wholesale Prices, Week Ending April 22nd

The Canadian used wholesale market saw overall prices decline for the 4th straight week (-0.23%). Both the Car segment and the Truck/SUV segment saw prices decline for the week, -0.10% and -0.36% respectively. Only five sub-segments experienced price increases for the week, with Sub-Compact Luxury Crossover seeing the largest increase for the week. (+0.21%). Compact Van saw the largest price decline for the week (-1.53%), after seeing the largest increase last week.

	This Week	Last Week	2017-2019 Average (Same Week)
Car segments	-0.10%	-0.11%	-0.09%
Truck & SUV segments	-0.36%	-0.16%	-0.07%
Market	-0.23%	-0.14%	-0.08%

Car Segments

• Overall, the volume-weighted wholesale used Car prices decreased by -0.10% for the week.
• Only Compact Car, Sporty Car and Premium Sporty car segments saw modest price increases for the week, with Compact Car increasing by +0;03% and Both Sporty Car and Premium Sporty Car increasing by +0.01%
• The Mid-Size Car segment saw the largest prices drops for the week, down -0.56% followed by Near Luxury Car (-0.23%) and Full-Size Car segment (-0.20%) for the week.

Truck Segments

• Overall, volume-weighted wholesale used Truck/SUV prices decreased for the 4th straight week (-0.36%).
• The Sub-Compact Luxury Crossover and Full-Size Pickup were the only two segments that saw prices increase for the week, with increase of +0.21% and +0.03% respectively.
• Compact Van segment saw the largest prices declines for the week (-1.53%), followed by Full-Size Luxury Crossover/SUV segment (-0.73%) and Full-Size Crossover/SUV (-0.71%).

Used Retail Prices & Listing Volumes

The average listing price for used vehicles remain at historic highs, however for the first time since April 2021 prices remained stable week-over-week, as the 14-day moving average remains slightly below $37,000. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.

Wholesale

The Canadian wholesale market has continued to remain stable overall but is remains slightly into the negative territory again. Newer vehicles tend to be outperforming vehicles aged three years and older.

Supply remains low while demand continues to soften on both sides of the border. Upstream channels continue to tap supply before it can be made available at physical auctions. Conversion rates increased this past week, as rates were observed into the 55% range on some lanes last week, with the few low kilometer, good condition units garnering high levels of bidding activity. In general, the quality of vehicles at auction remains somewhat below average as the supply of better-quality vehicles continues to be bought upstream.

Canadian Black Book’s Market Insights

Economics & Government

• In March, Canadian consumer prices increased 6.7% year over year, one percentage point higher than the gain in February (5.7%) This is the largest increase since January 1991.
• Gas prices rose 11.8% month over month in March, following a 6.9% increase in February. Global oil prices rose sharply in March due to supply uncertainty following Russia’s invasion of Ukraine.
• The Canadian dollar fell slightly at against the USD, finishing the week at $0.78.

U.S. Market

In the U.S., overall, Car and Truck segments (-0.03%) decreased for an eighteenth consecutive week; the prior week decreased by -0.20%. Volume-weighted Car segments increased +0.23%, compared to the prior week’s increase of +0.05%:
• Six of the nine Car segments increased last week.
• Compact Cars (+0.92%) reported the largest increase the segment has seen since November 2021. This marks the fifth consecutive week of increases for the segment. Similarly, Sub-Compact Car (+0.53%) increased for a sixth consecutive week.
• Luxury Car (-0.52%) and Premium Sporty Car (-0.31%) were the only Car segments to report notable declines. Sporty Car also declined, but it was a minimal -0.06%.

Volume-weighted Truck segments decreased by -0.14%; the previous week had a decrease of -0.33%:
• Six out of the thirteen Truck segments reported increases.
• The more fuel-efficient Crossovers reported increases last week, with Compact Crossovers increasing +0.55%, followed by Sub-Compact and Sub-Compact Luxury Crossovers, both increasing by +0.26%.
• The gas-guzzling Full-Size Crossover/SUV segment had another large week of declines, -2.25% after the prior week’s decrease of -2.14%.
• Full-Size Vans slowed the rate of gain with an increase of only +0.01%, compared to +0.26% the prior week.

Industry News

• 2022 Lincoln Navigator is now order-only, thanks to the chip shortage
• General Motors will release an “electrified” version of the Chevy Corvette next year, followed by a fully electric version of the iconic sports car soon after that, the automaker’s president Mark Reuss said on CNBC Monday.
• Audi and Navistar are working together to create a line of communication between cars and school buses using C-V2X technology.