CBB Weekly Automotive Market Update 06/7/2022

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Wholesale Prices, Week Ending June 3rd

The Canadian used wholesale market saw prices decline slightly for the week (-0.09%). For the 10th straight week, the Car segment outperform the SUV/Truck segment. The Car segment saw prices decline slightly (-0.07%), while the Truck/SUV segment saw prices decline by -0.12%, for the week.

	This Week	Last Week	2017-2019 Average (Same Week)
Car segments	-0.07%	+0.09%	-0.14%
Truck & SUV segments	-0.12%	-0.11%	-0.17%
Market	-0.09%	-0.01%	-0.16%

Car Segments

• Overall, the volume-weighted wholesale used Car prices increased slightly (-0.07%) for the week.
• Full-Size Car segment saw the largest price increase for the week (+0.45%), followed by Premium Sporty Car and Mid-Size Car, both with modest increases.
• Luxury Car segment saw the largest prices drops for the week, down -0.43% followed by Near Luxury Car (-0.08%) and Sub-Compact Car (-0.06%).

Truck Segments

• Overall, volume-weighted wholesale used Truck/SUV prices decreased for the 10th straight week (-0.12%).
• Only 2 sub-segments saw modest prices increases for the week, with Minivan up +0.02% followed by Sub-Compact Crossover (+0.01%)
• 11 of 13 Truck/SuV segments saw prices decrease for the week, with Full-Size Crossover/SUV segment decline the furthest (-0.38%) followed by Small Pickup (-0.37%) and Sub-Compact Luxury Crossover (-0.33%).

Used Retail Prices & Listing Volumes

The average listing price for used vehicles decreased for the week, as the 14-day moving average remains slightly above $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 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 35% 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

• Bank of Canada increases policy interest rate by 50 basis points. The Bank is also continuing its policy of quantitative tightening.
• Canadians split on confidence in Bank of Canada’s commitment to reduce inflation. Older Canadian’s more likely to show confidence in central Bank, says Bloomberg/Nanos.
• The Canadian dollar rose against the USD, finishing the week at $0.80.

U.S. Market

In the U.S., overall, Car and Truck segments (+0.11%) increased for a sixth consecutive week; the prior week increased by +0.12%.

Volume-weighted Car segments increased +0.21%, compared to the prior week’s increase of +0.15%:
· Seven of the nine Car segments increased last week.
· Increases for the Compact Car segment continue, but are slowing down, last week increasing +0.21% compared to the two most recent weeks’ gains of +0.54% and +0.68%. The segment has now increased for eleven weeks.
· Sporty Cars traditionally start to soften from their springtime strength by this point in the year, but they continued to increase last week with an additional gain of +0.62%.

Volume-weighted Truck segments increased by +0.06%; the previous week had an increase of +0.10%:
· Eight out of the thirteen Truck segments reported increases.
· The Full-Size Luxury Crossover segment had the largest Truck segment decline for a second consecutive week, -0.38% compared to the prior week’s decline of -0.48%.
· Full-Size Pickups have been slowing down the rate of gains in recent weeks and this past the segment reported stability with the overall segment movements averaging out to -0.002%.
· Full-Size Vans continued to increase with an additional gain of +0.12% last week.

Industry News

· Stellantis unit pleads guilty, will pay $300 million in U.S. diesel probe.
· Toyota Considering compact pickup to compete with the Ford Maverick
· Solid Power, backed by Ford and BMW, begins pilot production of innovative EV batteries with longer range and quicker recharging
· Hyundai’s Ioniq Electric and Ioniq Plug-In production comes to an end.