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. 

July 2019

The ADESA Canada Used Vehicle Price Index has been updated through July 2019.  The index increased after being adjusted for seasonality. Wholesale prices increased on average by 0.4% M-o-M.

With over a year of monthly decreases behind us, the July new light vehicle sales market showed some signs of life. Although remaining down relative to July 2018, notable volume was strengthened by FCA (estimated) and Toyota, which— thanks to respective increases of 18.9% and 17.2%—added nearly six thousand units to the monthly sales figure. Thanks to the strong increases from high volume brands, July new light vehicle sales settled at just 1.0% below July 2018 performance, a welcome change of pace given recent performance. In total, 173,533 units were sold in July 2019 compared to 175,317 units in July 2018. Passenger car sales decreased 16.8% while light trucks recorded a 5.8% increase, rising from 122,299 to 129,411 units.

Sales increases were not limited to just FCA and Toyota as Genesis, Lexus, and Subaru recorded single digit increase for the month with their respective sales increasing 5.2%, 3.8%, and 2.3%. Sales for Porsche (+0.8%), MINI (+0.7%), BMW (+0.4%), and Volvo (+0.2%) remained slightly above July 2018 results. Nonetheless, a majority of the Canadian brands recorded declines for the month with significant volume lost through Ford, Nissan, and Volkswagen which were jointly down over five thousand units.

Year-to-date sales dropped 4.8% by the end of July, falling nearly sixty thousand units behind 2018 figures with decreases among many higher volume brands. As the market exits the hot summer selling season, a decline is looking more and more likely for year end.

Price movements by segment were mostly negative in July. Minivans showed the most drastic increase at 3.4% ($376), followed by Mid Compact vehicles at 1.1% ($103). Midsize SUVs showed the most decrease at -3.3% ($549), followed by Midsize vehicles at -0.8% ($94), Compact SUVs at -0.7% ($103) and Fullsize Pickups -0.6% ($165).

 

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.

Register now to start buying and selling vehicles at our auctions