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 October 2019. The index increased after being adjusted for seasonality. Wholesale prices increased on average by 0.8% M-o-M.
The October new light vehicle sales market remained relatively stable in 2019 with an estimated 160,216 units sold, down 0.6% from October 2018 when 161,125 units were sold. Although passenger car sales fell 14.8%, a 5.0% increase in light truck sales helped offset the majority of this loss. Year-to-date sales fell an estimated 3.8% with a 15.6% drop in passenger car sales against a 1.1% increase in light truck sales. Relative to this, October brought with it a welcome shift in the market. This disparity between passenger car and light truck sales shifted their sales ratio to 74.1% light trucks against 25.9% passenger cars. In the same time in 2018 this breakdown settled at 70.5% light trucks against 29.5% passenger cars. Overall, October 2019 presented the fourth highest October sales results on record. A few highlights:
- Standout performers in terms of percent change for October 2019 were Maserati, Mitsubishi, Audi, and Kia all of whom recorded double digit sales increases (36.4%, 18.8%, 11.2%, and 11.1% respectively)
- Significant sales volume was added by FCA (est.) and Honda, both of whom contributed over one thousand new unit sales to the market total
- Light truck sales increased 1.9% overall with an estimated 126,087 units sold
- Although year-to-date sales have remained down, Toyota, Hyundai, and Kia added significant sales volume throughout 2019 (6,648, 3,807, and 2,976 units respectively)
- A few higher volume brands have had the opposite effect such as Nissan (down 12.8% in October and 8.5% year-to-date) and General Motors (down an estimated 7.5% in October and 11.7% year-to-date)
Price movements by segment were mostly negative in October. Midsize vehicles showed the most drastic decrease at -11.5% ($1,105), followed by Fullsize Pickups at -8.5% ($2,039), Mid Compact vehicles at -7.5% ($614), Compact SUVs at -6.7% ($902), and Midsize SUVs at -4.4% ($672). Minivans showed the only increase at 3.4% ($373).
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.