CBB Weekly Automotive Market Update 05/3/2022

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Wholesale Prices, Week Ending April 29th

For the 5th straight week, the Canadian used wholesale market saw overall prices decline (-0.04%). The Car segment saw prices increase (+0.18%) for the first time since early April, as demand shifts to smaller, more fuel-efficient vehicles amidst high gas prices and rising interest rates. The Truck/SUV segment saw prices decline for the week (-0.26%), as demand softened slightly. With Summer around the corner, Premium Sporty Car segment saw the largest price increase for the week (+0.72%), followed by Sporty Car (+0.57%) and Full-Size Car (+0.42%).

	This Week	Last Week	2017-2019 Average (Same Week)
Car segments	+0.18%	-0.10%	-0.14%
Truck & SUV segments	-0.26%	-0.36%	-0.15%
Market	-0.04%	-0.23%	-0.15%

Car Segments

• Overall, the volume-weighted wholesale used Car prices increased by +0.18% for the week.
• Premium Sporty car segment saw the largest price increase for the week (+0.72%), followed by Sporty Car (+0.57%) and Full-Size Car (+0.42%).
• The Near Luxury Car segment saw the largest prices drops for the week, down -0.30% followed by Luxury Car (-0.17%) and Sub-Compact Car (-0.02%) for the week.

Truck Segments

• Overall, volume-weighted wholesale used Truck/SUV prices decreased for the 5th straight week (-0.26%).
• The Sub-Compact Luxury Crossover segment saw the largest price increase for the week (+0.18%), followed by Compact Van and Full-Size Pickup.
• Mid-Size Luxury Crossover/SUV segment saw the largest prices decline for the week (-0.67%), followed by Full-Size Luxury Crossover/SUV segment (-0.47%) and Full-Size Crossover/SUV (-0.47%).

Used Retail Prices & Listing Volumes

The average listing price for used vehicles remain at historic highs, however prices remain 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

• Real gross domestic product rose in every province and territory except Saskatchewan in 2021. As many sectors of the Canadian economy continued to emerge from significant contraction caused by the Covid-19 pandemic in 2020.
• Consumer confidence marginally positive, Ontario confidence weakens says Bloomberg-Nanos report.
• The Canadian dollar fell slightly at against the USD, finishing the week at $0.77. U.S. Market In the U.S., overall, Car and Truck segments (+0.11) the first increase in eighteenth week; the prior week decreased by -0.03%.

Volume-weighted Car segments increased +0.38%, compared to the prior week’s increase of +0.23%:

• Seven of the nine Car segments increased last week.
• Compact Cars had another week of large gains, appreciating an additional +0.91% after the prior week’s large increase of +0.92%. 8-to-16-year-old Compact Cars increased +1.16% • Luxury Car (-0.37%) and Premium Sporty Car (-0.22%) were the only Car segments to report declines.
• Sub-Compact Cars continued to increase with a gain of +0.41%, but the strength of the newer model years (0-to-2 years) was much larger at +1.17%.

Volume-weighted Truck segments decreased by -0.02%; the previous week had a decrease of -0.14%:
• Seven out of the thirteen Truck segments reported increases.
• Compact Crossovers (+0.41%) increased for a fifth consecutive week for an average weekly gain of +0.32%.
• After twelve weeks of declines, the Minivan segment returned to gains last week, with an increase of +0.18%. Compact (+0.55%) and Full-Size (+0.32%) Vans continued their increases, marking sixty-six weeks of gains for the Full-Size segment.
• Small Pickups (-0.72%) had the largest decline of the Truck segments last week.

Industry News

• Stellantis announced on Monday that both its Brampton and Windsor plants are getting a $3.4-billion overhaul, converting them to multi-energy vehicle assembly facilities ready to produce electric vehicles.
• Under the new rules, which took effect April 25, the rebate is available on EV passenger car models with a base price under $55,000, higher-priced versions of those models up to $65,000, larger vehicles including SUVs, minivans and pickup trucks with a starting price of $60,000, and more expensive versions of those models up to $70,000.
• EV industry is seeing a shift to 800-volt technology as suppliers agree that there are advantages to faster-charging architectures.