The decline continues – just a little slower.
The weekly Market insights showed that the Canadian wholesale used car market fell 0.20% for the week ended August 24, slightly less than the previous week’s 0.28% decline.
Auto segment values rose significantly, falling 0.25% compared to the previous week’s 0.44% decline. Unlike last week, one auto segment – compact cars – gained value, but only by $4. On the other hand, three segments fell by more than $100, with full-size cars falling by $129 (0.6%), premium sports cars falling by $152 (0.18%) and prestige luxury cars falling by $275 (0.41%).
Trucks lost 0.16%, boosting two segments that gained. Large pickups rose $259 (0.77%), while large crossovers/SUVs gained $106 (0.27%). Three truck segments lost $200 or more for the week: large luxury crossovers/SUVs ($254, 0.40%), midsize luxury crossovers/SUVs ($212, 0.51%) and large vans ($200, 0.58%).
Retail prices remain largely stable, with the 14-day moving average at $34,200, down $200 from the previous week. Sell-through rates at monitored auctions have also stabilized, ranging between 26% and 76%.
CBB analysts noted some good economic signs: Canada’s annual inflation rate fell from 2.7% in June to 2.5% in July 2024, marking the smallest increase in consumer prices since March 2021. In addition, the value of the Canadian dollar rose to $0.742 from $0.732 the previous week.
Analysts noted a shift in the U.S. wholesale market as Labor Day approaches. The overall market was flat for the week, with trucks actually gaining 0.05%, while auto depreciation slowed to 0.14% “to a seasonal decline typical for this time of year.”
