Canadian vs U.S. used car market (0.43%) vs (1.19%)

[alison__p]

Looked up several sources such black book, car gurus, auto trader and noticed that US market shows way more aggressive price drops rather than Canadian.
E.g. the latest weekly data shows that it was:
-0.43% drop (average -0.37%) for Canada
https://www.canadianblackbook.com/market-insights/market-insights-11-1-2022/
-1.19% drop (average -0.54%) for US
https://www.blackbook.com/market-insights/market-insights-11-1-2022/

Is it just a lag and I should wait?

 

[theo3]

@alison__p I don't have an answer, but very cool sites. Bookmarked.

 

[hurtbuthopeful2699]

@alison__p I believe there is a lag because of higher transport costs to Canada, and lower sales volume. Speculation but I've noticed our market doesn't move in step with theirs.

 

[jer333john33]

@alison__p If you don’t need a car ASAP I would wait. Car lots are still low and most vehicles inbound are pre sold still (in my area) which also causes used vehicles to be priced higher due to demand. Chip fabs are catching up (only one of the issues with new vehicles) but supply chains are still having issues. I assume the longer you wait the lower these prices will go until eventually car lots will be back to normal and so should pricing hopefully.

 

[hakoa]

@alison__p If you’re asking if you should wait to buy a used car the answer is an outstanding yes. Used abs new cars are way over priced. The used market is coming down but it may still take 6 months or more to get back to respectable levels.

 

[seebass]

@alison__p Lag, 6 month to a year.

 

[gzomk]

@seebass This. Probably closer to 6 months than a year.

 

[keeley120]

@gzomk And if the lag is due to lots being filled up, the US being a larger market means they generally get more wholesaler activity as well. And their average car loans were also way higher than ours at their market peak. So they have bigger numbers to deal with and more people to repossess.

Eventually the Canadian market and the wholesales of vehicle lots will increasingly make their way up here.

Hopefully sooner than later because while we want a new car, if our current one kicks the bucket before the new one is ready, we will need to hop into the used market and stall our next purchase a bit longer.

 

[resjudicata]

@alison__p The markets are different due to the population. There is more demand and less supply in Canada, plus people tend to stick to their vehicles for longer time. Vehicles like 4runner and toyota in general have higher demand and less supply. Even though some of the toyota models are made in Canada, they're still offered at higher prices. Lot of dealerships in US won't even sell to Canadians except for private dealers.

I spoke to a auto broker in Vancouver, BC who helps Canadian buys vehicles from US and he said market there is still on higher price but it's showing signs of decrease in price