ADESA Canada Price Index

ADESA Canada Price February

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 2023

The OPENLANE Canada Used Vehicle Price Index has been updated through February 2024. The index decreased by 0.8% after being adjusted for seasonality.

Automakers sold approximately 129,000 new vehicles in February 2024. The strong February sales suggest that the volatility caused by constraints on new and used vehicles has subsided. March typically signals the beginning of the selling season in Canada as OEMs and retailers gear up for traditionally the busiest time of the year. As the year goes the impacts of high interest rates and high MSRPs may temper any pent-up demand.

At present, ALG sees used values slowing at a steady pace while remaining historically robust. In the longer term, used dollar values will remain strong and retention values will return to historical norms. 

Price movements by segment were mostly even in February. Fullsize pickup showed the most decrease at -1.5% ($502), Midsize at -0.6% ($113), and Mid Compact decreased by $5. Positive movements were Compact SUV at 1.7% ($354), Midsize SUV at 1.4% ($352), and Minivan at 0.3% ($75).

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. 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.