ADESA Canada Price Index

ADESA Canada Price Index for April

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.

April 2023

The ADESA Canada Used Vehicle Price Index has been updated through April 2023. The index increased by 2.1% after being adjusted for seasonality.

Canadian auto retailers saw a slight increase in year over year April new vehicle sales. The increase of approximately 2% vs April 2022 is positive news, but sales were slightly down from March, and the month doesn’t stack up against all time April highs.

The first four months of 2023 are not encouraging that Canadian sales are on a path to shake off the post pandemic slump.  Sales continue to be impacted by high borrowing and leasing costs, all time high MSRP’s, and a short supply of inventory. 

Price movements by segment were mostly negative in April. Minivans showed the most increase at 6.7% ($1,500) followed by Midsize at 2.5% ($509). The rest were negative with Mid Compact at -4.1% ($828), Fullsize Pickup at -3.3% ($1,337), Midsize SUV at -1.0% ($278), and Compact SUV following closely behind at -1.0% ($247).

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.