ADESA Canada Price Index

ADESA Canada Price Index for November

ADESA Canada is the largest provider of wholesale used vehicle auctions in Canada. The Index is calculated from millions of pieces of sales data from ADESA Canada’s live open bidding auctions.

November 2022

The ADESA Canada Used Vehicle Price Index has been updated through November 2022. The index decreased after being adjusted for seasonality.

December new vehicle sales rose about 4% year over year but sales from a 2019 perspective were in decline vs November 2019 sales – off almost 28,000 units. The industry continues to be hampered by headwinds: inventory constraints, rising interest rates, higher new vehicle pricing and the risk of a (mild) recession. These risks are weighing on consumers as we enter the final month of 2022.

ALG anticipates no major changes to the Canadian market in early 2023 and is forecasting that the market should improve in the second half of the year driven by pent up demand that can be met by more available inventory.

Price movements by segment were mostly negative in November. Minivans showed the most decrease at -10.2% ($1,991). Next are the Midsize at -6.6% ($1,158) followed by Fullsize Pickups at -4.6% ($1,370), and Compact SUVs at -4.0% ($855). Some positive segments are the Midsize SUVs which increased by 8.6% ($1,975) and the Mid Compacts at 0.4% ($73).

How ADESA calculates the UVPI

ADESA Canada is the largest provider of wholesale used vehicle auctions in Canada. The Index is calculated from millions of pieces of sales data from ADESA Canada’s live open bidding auctions with the addition of used vehicle auction sales data purchased through the National Auto Auction Association [NAAA]. The data is adjusted for a large number of variables, including type of vehicle, mileage, age and season. A two-step statistical filtering process excludes extreme values in the raw data. The resulting Index provides a picture of the Canadian used vehicle market and depicts the trend of used vehicle prices in Canada.

ADESA Canada notes that the index provides insight into the economy as a whole and consumer spending patterns. It also points to the direction of the used vehicle market and, by implication, of the new vehicle market, as there is a complex relationship between the prices of used and new vehicles which is reflected in the adage ‘Today’s new vehicle is tomorrow’s used vehicle’. Typically, used vehicle prices respond to many macro variables, such as the health of the overall economy, financing available to new versus used vehicles; the volume of vehicles in the pipeline, the age of vehicles on the road, the U.S. dollar exchange rate, incentives and the number of vehicles coming off lease.