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 November 2019. The index increased after being adjusted for seasonality. Wholesale prices decreased on average by 0.4% M-o-M.
The decline in new Canadian vehicle sales observed through much of this year paused in November. Following October’s stable sales performance, total sales in November settled at an estimated 143,666 units, falling just two units shy of the 143,668 unit total sold last year. Year-to-date sales remained negative, however, and were down 3.5% overall. From a segment perspective passenger car sales continued to deteriorate, this time down 18.6% with the light truck side of the market picking up the slack with a sales increase of 6.9%. Growth was led by Volvo with sales up 46.3% for the month. Mitsubishi and Lexus followed Volvo with sales increases of 20.3% and 17.3% respectively. Broadly, sales performance was evenly split between 13 brands noting negative sales and 13 brands swinging positive. A few highlights:
- Kia and Hyundai both secured single digit sales increases for the month at 8.6% and 5.1% respectively; Genesis—however—noted some volume loss
- FCA sales increased an estimated 10.8%, adding over thirteen hundred units to total sales volume for the month
- While Honda noted a sales decrease of 3.1%, Acura recorded a sales bump of 2.6%
- Audi secured a 4.4% sales increase for the month despite a fairly slow year with year-to-date sales down 10.0% by the end of November
It is almost certain at this point in time that the two million unit mark is out of the question for 2019. That being said, this year will most likely still land within the top five selling years on record and depending on December figures, should place it between 2016 and 2015 which are currently fourth and fifth respectively.
Price movements by segment were mostly negative in November. Minivans showed the most drastic decrease at -20.8% ($1,867), followed by Midsize SUVs at -10.5% ($1,453), Mid Compact vehicles at -8.2% ($619), Fullsize Pickups at -8.1% ($1,787), Midsize vehicles at -8.1% ($724), and Compact SUVs at -2.5% ($326).
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.