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 March 2019. The index increased after being adjusted for seasonality. Wholesale prices increased on average by 0.4% M-o-M.
The Canadian new vehicle sales market was down 2.5% in March, continuing the downward trend that began in the same month last year and marking the thirteenth consecutive month of decreases. Sales figures reached 181,800 units for the month, down from 186,447 units recorded in March 2018 resulting in March 2019 grabbing third highest position for all March sales on record, behind 2018 and 2017. Total passenger car sales decreased 10.1% while light trucks just managed to remain positive (+0.6%).
First quarter sales stopped short of 2018’s 429,258 units and settled at 411,465 units thus far in 2019, a decrease of 4.1%. The market share of light trucks nearly reached three quarters of the market in the first quarter with a breakdown of 74.3% light trucks to 25.7% passenger cars.
Ford claimed top spot for sales volume in March, recording a total of 27,915 unit sales, growing 7.2% year-over-year. This increase allowed Ford to push ahead of General Motors which held the top spot last March, but has since decreased 18.4%. With FCA sales also down 11.5%, Ford has secured a notable lead over their long-time competitors.
March double digit sales increases were recorded by Genesis (+82.5%), Mitsubishi (+42.4%), Infiniti (+14.1%), and Honda (+12.0%) which performed well despite the overall market situation. Genesis (+128.5%) and Mitsubishi (+25.0%) also recorded double digit increase in the first quarter overall. Exactly half of all reporting brands noted positive sales for March with thirteen increases against thirteen decreases. In the first quarter overall, only ten brands recorded sales increases.
Price movements by segment were mostly positive in March. Midsize SUVs showed the most drastic increase at 4.1% ($728), followed by Mid Compact vehicles at 2.7% ($253), Compact SUVs at 1.6% ($229), Fullsize Pickups at .3% ($79), and Midsize vehicles at .1% ($6). Minivans showed the only decrease at -.1% ($16).
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.