The Canadian used vehicle wholesale market experienced a modest decline of -0.33% in pricing for the week ending December 21, 2024, according to the latest update from Canadian Black Book. This decline is notably less than the previous report's -0.63%, aligning closely with the 2017-2019 average of -0.32% for the same week, suggesting a stabilization in market prices after sharper drops.

Segment-Specific Trends

Car segments saw a decrease in prices by -0.26%, a reduction less severe than the previous update which showed a -0.62% drop. The truck and SUV segments experienced a -0.39% decline from the previous week's -0.63%. Notably, compact cars, and in the truck category, compact crossovers/SUVs and compact luxury crossovers/SUVs recorded the largest declines.

Market Stability and Consumer Behavior

The report indicates that over 36% of market segments saw average value changes of more than ±$100. This points to significant but not extreme volatility, with 36% of the car segment and 24% of the truck segment prices dropping. Such trends reflect cautious but consistent consumer behavior in response to broader economic signals, such as interest rate adjustments and changes in the floor prices.

Auction sale rates varied significantly, from as low as 7% to as high as 70%, averaging at 32.6%. This fluctuation is attributed to adjustments in interest rates and a gradual decline in floor prices, impacting buyer caution and market dynamics.

Comparative Analysis with the U.S. Market

Similar trends are observed in the U.S., where the auction market recorded the highest total inventory of the year last week, along with a 2% decrease in the auction conversion rate. This suggests a broader North American trend of cautious buying behavior amidst standard seasonal depreciation patterns.

The ongoing adjustments in the used vehicle market offer crucial insights for dealers looking to navigate the fluctuating landscape effectively, emphasizing the need for strategic pricing and inventory management to align with current market conditions.