While still down compared to a year ago, Canadian Black Book’s Used Vehicle Retention Index shows a slight increase in March compared to February.
Though it’s an increase of just 0.1 points, so it’s fair to call the change flat. Now sitting at 158 points, the index is down 4.2 per cent year-over-year, Canadian Black Book reported.
“The Canadian wholesale market continues to show overall stability as the economy continues to show strength and the U.S. wholesale market heats up.” Said David Robins, principal automotive analyst and head of Canadian vehicle valuations at Canadian Black Book.
In the U.S., however, volatility appears to be the name of the game. The Manheim Used Vehicle Value Index (MUVVI) jumped 8.6 per cent in the first quarter, ending March at 238.1 points. Its index has gone up four straight months after going through the largest decline within one year in the series’ history in 2022.
Still, like Canada, wholesale used prices are down in March 2023 compared to the same period last year.
“Based on full-month data and other key metrics, we definitely think conditions are weakening. March came in like a lion and went out like a lamb regarding wholesale vehicle values. After four months of seasonally adjusted gains and 11 straight weeks of price increases, March was a turning point. So, April will likely continue the downward trend we saw as March ended, and we expect to see some negative monthly moves ahead for the index,” said Cox Automotive chief economist Jonathan Smoke.