After hitting a high in March, wholesale vehicle values in Canada have now fallen sequentially for three straight months, and the year-over-year growth — while still in double-digit percentages — has moderated.
Still, used-car prices remain “extremely high,” as Canadian Black Book illustrates in a report around its Used Vehicle Retention Index for June.
The index, released Monday, came in at 161.3. That’s down from 162.6 in May and the third consecutive month-over-month decline following a peak of 165.0 in March.
Year-over-year, wholesale prices were up 29% in June. But that’s the lowest growth rate of 2022, which started with a 44% spike in January, CBB said.
Still, take that with a grain of salt.
“Trends in overall value, and year-over-year growth are in decline, there is no refuting that. This is a strong signal that finally values may have peaked,” said David Robins, CBB’s principal automotive analyst and head of Canadian vehicle valuations, in a news release.
“However, the reality is that prices are still extremely high compared to July 2020, when prices began skyrocketing,” he said.
Looking at the 22 individual vehicle segments that CBB tracks, all showed year-over-year price growth in June. However, just seven segments showed month-over-month growth.
As far as how July has started, there was a 0.26% decline in wholesale values last week, following a 0.22% decline for the week ending July 8, according to CBB’s Market Insights report from Tuesday
The average movement for the same mid-July week of 2017 through 2019 was a drop of 0.21%.
“The Canadian wholesale market decreased further this week,” CBB said, referring to the week ending July 15. “The decrease seen this week were similar to the previous week.
“Supply remains low with high demand for newer good condition vehicles on both sides of the boarder,” they added. “Upstream channels continue to tap supply before it can be available to wholesale markets.”
Source : AutoFinanceNews
