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. 

February 2020

The ADESA Canada Used Vehicle Price Index has been updated through February 2020. The index increased after being adjusted for seasonality. Wholesale prices increased on average by 0.3% M-o-M.

Most Canadian OEMs report quarterly figures with the exceptions of Gensis, Hyundai, Kia, Nissan, Infiniti, Lexus, Toyota and Volvo who are continuing to report monthly. Looking at the numbers that were reported we see the following:

  • Genesis – -13% (off 5 units vs February 2019)
  • Hyundai – +2.7%
  • Kia – +6.6%
  • Nissan – -10.5%
  • Infiniti – -30%
  • Lexus – +14%
  • Toyota – +13.9%
  • Volvo – +8.3%

It is estimated that light truck / SUV sales continue to grow at the expense of declining car sales. The trend continues at a 20/80 split cars to trucks /SUVs. February 2020 vs 2019 had two extra selling days (26 vs 24) and while that may have helped the month, it does seem as though there is a collective ‘wait & see’ on how Covid – 19 and the potential economic slowdown will affect sales. It is estimated that approximately 123K units were sold in February 2020, which would see a slight increase over 2019, by about 2.5%. A Bank of Canada rate cut has occurred, but significant uncertainty remains as to how the automotive market will hold up in the critical spring sales months. That said, there are many conversations that speak to how quickly the economy will right itself once Covid-19 is contained and consumer confidence returns. February is only the second month of year and there are 10 more months of sales for 2020.

Fullsize Pickups showed the most drastic decrease at -1.6% ($439), followed by Compact SUVs at -1.0% ($137). Minivans showed the most drastic increase at 6.9% ($762), followed by Midsize vehicles at 5.8% ($625), Midsize SUVs at 5.3% ($929), then Mid Compact vehicles at -.1% ($13).

 

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.

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