ADESA Canada Price Index
The ADESA Canada Used Vehicle Price Index
The ADESA Canada Used Vehicle Price Index has been updated through April 2018. The index increased after being adjusted for seasonality. Wholesale prices increased on average by 0.60% M-o-M.
The Index of Consumer Confidence rose again in April. The rise was led by a jump in positive responses to the current finances question, with more consumers saying their finances have improved over the last six months. However, with inflation rising and higher interest rates leading to higher charges on debt, Canadians have become more pessimistic about their future finances, a trend that is likely to continue over the next year. Provincially, confidence improved the most in Alberta, where the economy is getting a boost from oil prices, which have reached a near two-year high.
The Canadian new vehicle sales market observed another slowdown in April with a 2.7% decrease in light vehicle sales, representing the second consecutive month of declines. A total of 191,856 units were sold which places April 2018 as the third highest selling April on record, behind 2016 and 2017. Although light truck sales grew 2.2%, this growth was dragged down by the passenger car market, which decreased 12.4%. Year-to-date sales remain just slightly (0.4%) above 2017’s sales with strength in the light truck market (+5.1%) outweighing the passenger car market’s losses (-9.6%). It remains to be seen whether this lead will hold out in the following months.
Despite the slowdown, many brands experienced sales growth. Percentage sales growth was led by Genesis (+291.4%), smart (+50.0%), and Volvo (+41.8%), albeit at lower volumes. Overall, seventeen of the reporting manufacturers recorded sales increases with nine manufacturers recording concrete decreases. Some highlights for April include:
• FCA (-15.8%), General Motors (-4.6%), and Ford (-1.1%) all recorded sales decreases
• The German brands outperformed the market with Audi (+13.9%), BMW (+10.8%), Mercedes-Benz (+8.3%), and Porsche (+0.6%) all recording sales increases
• Acura, after a weak first quarter, recorded a 23.2% sales increase for the month
• Similarly, Land Rover recorded a significant upswing in sales with a 32.4% increase in April with a 9.7% increase year-to-date
• Mitsubishi and Volkswagen recorded double digit sales increases year-to-date (+16.9% and +24.5% respectively) while only recording single digit increases for April (+2.2% and +4.4% respectively)
Price movements by segment were mostly positive in April. Fullsize Pickups showed the most drastic decrease at -1.3% ($333), followed by Midsize vehicles at -0.2% ($25). Minivans showed the highest increase at 3.8% ($475), followed by Midsize SUVs at 3.4% ($606), Mid Compact vehicles at 2.8% ($247), and Compact SUVs at 0.9% ($133).