CBB Weekly Automotive Market Update 06/2/2022

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Wholesale Prices, Week Ending May 27th

The Canadian used wholesale market remained relatively flat for the week (-0.01%). For the 9th straight week, the Car segment continues to outperform the SUV/Truck segment. The Car segment saw prices increase slightly (+0.09%), while the Truck/SUV segment saw prices decline -0.11%, for the week. 13 of 22 sub-segments saw prices increase for the week, with Mid-Size Car (+0.62%) leading the way, followed by Full-Size Car and Minivan.

	This Week	Last Week	2017-2019 Average (Same Week)
Car segments	+0.09%	-0.12%	-0.07%
Truck & SUV segments	-0.11%	-0.22%	-0.08%
Market	-0.01%	-0.17%	-0.07%

Car Segments

• Overall, the volume-weighted wholesale used Car prices increased slightly (+0.09%) for the week.
• Mid-Size Car segment saw the largest price increase for the week (+0.30%), followed by Full-Size Car (+0.55%) and Compact Car (+0.45%).
• Near-Luxury Car segment saw the largest prices drops for the week, down -0.44% followed by Luxury Car (-0.24%).

Truck Segments

• Overall, volume-weighted wholesale used Truck/SUV prices decreased for the 9th straight week (-0.11%).
• Compact Van segment saw the largest price increase for the week (+0.46%), followed by Full-Size Pickup (+0.28%) and Small Pickup (+0.13%) for the week
• Full-Size Crossover/SUV segment saw the largest prices decline for the week (-0.55%), followed by both Full-Size Luxury Crossover/SUV and Full-Size Van both down -0.39%.

Used Retail Prices & Listing Volumes

The average listing price for used vehicles decreased for the week, as the 14-day moving average remains under $37,500. 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 with improvements in sales prices last week compared to the week prior. 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 were challenged this past week, as rates were mostly under 40% range on most 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 (GDP) grew 0.8% in Q1 2022, a third consecutive quarterly increase, mainly on the strength of increased business investment and Household consumption.
• Canadian Consumer increasingly focused on inflation, says Nanos report. Expectations in consumer confidence tracking declines and sputters to neutral on real state sentiment decline.
• The Canadian dollar remained rose against the USD, finishing the week at $0.79.

U.S. Market

In the U.S., overall, Car and Truck segments (+0.12%) increased for a fifth consecutive week; the prior week increased by +0.20%. Volume-weighted Car segments increased +0.15%, compared to the prior week’s increase of +0.37%: · Five of the nine Car segments increased last week.

· Compact Cars (+0.54%) increased for a tenth consecutive week for an average weekly increase of +0.60%.
· Sporty Car slowed the rate of increases last week, +0.08% compared to +0.52% the week prior.
· Premium Sporty Car declines have accelerated, -0.49% last week compared to -0.35% the week prior. This now marks twenty-five weeks of depreciation.

Volume-weighted Truck segments increased by +0.10%; the previous week had an increase of +0.11%:

· Seven out of the thirteen Truck segments reported increases. · All Luxury Crossover/SUV segments declined last week with the Full-Size (-0.48%) segment reporting the largest decline.
· Full-Size Pickups increased for a third consecutive week, but the rate of increase slowed to +0.09% after the prior week’s increase of +0.11%.
· Full-Size Vans continue to be strong, with the segment increasing another +0.52% last week.

Industry News

· Nissan Motor Co. has stopped taking preorders for its new Ariya electric crossover; the EV is expected to go on sale this fall.
· Acura confirmed that they will be bringing back the Integra as a 2023 model, replacing the ILX. Integra is expected to be Acura's last gasoline-powered new vehicle.
· Toyota is phasing out the Avalon with the 2022 model year being its last and production stopping in August of 2022.
· Cadillac reportedly sold out of pre-order reservations for its upcoming electric Lyriq SUV. The EVs are scheduled to be delivered this year.