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 OPENLANE Canada Used Vehicle Price Index has been updated through October 2023. The index decreased by 1.4% after being adjusted for seasonality.
October new car sales continued the positive trend for 2023 with sales being up approximately 20% year over year. The industry is still struggling with high borrowing costs, strong MSRPs and a manufacturing chain that has struggled with production and union activities.
ALG expects to see a longer trendline of low used and new vehicle inventory, the slow return of incentives and record high MSRPs as part of the near-term auto industry.
Price movements by segment were negative in October. Midsize showed the most decrease at -9.3% ($1,830), Minivan at -8.8% ($1,412), Mid Compact at -6.6% ($1,247), Compact SUV at -6.5% ($1,412), Midsize SUV at -5.9% ($1,397), and Fullsize Pickup at -2.1% ($693).
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.