Price Index

OPENLANE Canada Price Index for May

OPENLANE Canada is the largest provider of wholesale used vehicle auctions in Canada. The Index is calculated from millions of pieces of sales data from OPENLANE Canada’s live open bidding auctions.

May 2024

The OPENLANE Canada Used Vehicle Price Index has been updated through May 2024. The index decreased by 1.5% after being adjusted for seasonality.

May 2024 light vehicle sales increased almost 6% year over year and the market continues to see month over month increases. Significant increases are likely to be subdued as high interest rates weigh on consumer spending and any such increases will generally be supported by various incentives from OEMs.

The alg near-term outlook sees record high used values deteriorating, but the decline will be slow and stable.  Retention will also decline but will remain historically strong. The alg long term outlook forecasts that dollar values will remain strong, and retention will return to historical norms. The large pricing increases that OEMs have taken in recent years will create headwinds to maintain current retention levels.

Price movements by segment were even in May. Minivan showed the most decrease at -7.1% ($1,614), Compact SUV at -3.4% ($685), and Mid Compact at -1.3% ($216).  Some increases were Midsize at 5% ($936), Midsize SUV at 4.3% ($983), and Fullsize Pickup at 0.5% ($166).

How OPENLANE calculates the UVPI

OPENLANE Canada is the largest provider of wholesale used vehicle auctions in Canada. The Index is calculated from millions of pieces of sales data from OPENLANE Canada’s live open bidding auctions. 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.

OPENLANE 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.