ADESA Canada Price Index
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.
The ADESA Canada Used Vehicle Price Index has been updated through May 2019. The index increased after being adjusted for seasonality. Wholesale prices decreased on average by 0.30% M-o-M.
In line with the ongoing pattern of lukewarm sales in the new light vehicle market, May brought about a 5.9% decline. An estimated total of 202,800 units were sold for the month, down close to thirteen thousand units from the 215,407 units sold in May of 2018. Passenger car sales settled at 56,975—down 17.4%—while light truck sales remained near par. Even with this decrease, May 2019 settled in as the third highest selling May on record.
As with the previous few months, May was full of mixed performance with some high volume brands down significantly and others setting monthly sales records. FCA sales fell 25.4% for the month, a deficit of roughly seven thousand units over last May while Ford, which saw a comparatively small decrease of 1.6%—outperforming the market—pulled ahead of its competition and established itself further as the top brand by volume.
Although they are typically lower volume brands, smart and Genesis noted the most significant sales increases for the month at 115.8% and 14.3% respectively. While there were no other double-digit increases this month, several brands saw strong single digit growth including Lexus (+9.5%), Toyota (+9.0%), Kia (+8.6%), Volkswagen (+6.6%), Subaru (+6.6%), Volvo (+6.4%), and Porsche (+6.2%). Toyota—when including Lexus—noted a 5.2% sales increase year-to-date which propelled them into third position in terms of sales volume, just over a thousand units ahead of FCA.
Price movements by segment were mostly negative in May. Mid Compact vehicles showed the most drastic decrease at -7.9% ($658), followed by Compact SUVs at -6.2% ($869), Fullsize Pickups at -2.0% ($547), and Midsize SUVs at -1.9 % ($338). Minivans showed the most drastic increase at 4.1% ($503), followed by Midsize SUVs at 3.7% ($424).
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.