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 August 2020. The index increased after being adjusted
for seasonality. Wholesale prices increased on average by .6% M-o-M.
Canadian light vehicle sales in August are estimated to be ~9% down from August 2019 (2020 165,837 vs 2019 182,040) and less than a percent decrease from July 2020. It’s probably early to call this a trend, but with March and April sales (or lack thereof) still fresh in our minds – the rebound of June, July and August sales to a more palatable level eases consumer confidence. With that said, Canadians are still in the pandemic mode of social distancing, adapting to their work reality, school has or is starting, and we are holding our breath that we will a) continue to move through phases or b) we encounter a second wave. As noted in past months, most Canadian OEMs have moved to quarterly reporting, but those who report monthly have seen the following stats for August:
- Toyota – decrease of 3.5% vs August 2020
- Subaru – increase of 11.5% (best August record)
- Kia – increase of 15%
- Volvo – increase of 26%
- Hyundai – increase of 0.4%
- Mazda – decrease of 4.8%
- Honda Canada – decrease of 16%
Price movements by segment were mostly positive in August. Minivans showed the most drastic increase at 6.3% ($658), followed by Compact SUVs at 1.3% ($184), Midsize vehicles at .5% ($60), Midsize SUVs at .2% ($42), and Fullsize Pickups at .2% ($69). Mid Compacts moved negative at -.1% ($12).
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.