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. 

September 2019

The ADESA Canada Used Vehicle Price Index has been updated through September 2019. The index increased after being adjusted for seasonality. Wholesale prices increased on average by 0.5% M-o-M.

The fleeting glimpse of increased sales in August disappeared in September with new light vehicle sales in Canada down 3.7% at an estimated 166,488 units sold. Even though the total market moved downward, a number of brands recorded positive sales growth nonetheless. In total, a dozen reporting brands noted sales increases in September 2019 but key losses among higher volume brands such as General Motors, Nissan, and Toyota resulted in an overall decline. Some positive highlights for the month:

  • Lexus–marching to the beat of their own drum—noted a 21.0% sales increase for the month
  • Mitsubishi and Kia followed at a slight distance, noting sales up 15.5% and 15.3% respectively
    Volvo and Acura rounded out the double digit percentage sales increases for the month with growth at 12.0% and 10.7% respectively.
  • Light truck sales increased 1.9% overall with an estimated 126,087 units sold

September performance lined up closely with year-to-date results, down 4.1% with 1.50 million units sold, falling from 1.57 million units in 2018. Increases at Toyota (+4.5%), Kia (+4.1%), and Hyundai (+3.5%) added over thirteen thousand units to total sales volume but large volume decreases from General Motors (-12.2%), Nissan (-8.0%), Ford (-3.1%) and others were more than enough to offset this increase. Total year-to-date passenger car sales decreased 15.6% while light truck sales remained positive at 0.7%.

Price movements by segment were mostly negative in September. Minivans showed the most drastic decrease at -11.5% ($1,208), followed by Midsize SUVs at -8.1% ($1,298), and Mid Compact vehicles at -4.7% ($409), and Compact SUVs at -2.1% ($301). Midsize vehicles showed the most increase at 1.2% ($134), followed by Fullsize Pickups at 0.7% ($191).

 

 

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