Used Vehicle Prices Rise as Strong Demand Continues
Used vehicle prices continued to climb in early March, with the Manheim index up slightly from February and more than 5% higher than last year. The market is holding strong during its usual busy season.
Higher tax refunds are helping boost consumer spending, and since many refunds haven’t been issued yet, demand could stay strong into April. Retail sales have also improved for five straight weeks, supporting both new and used vehicle markets.
At auctions, prices, retention rates, and sales conversions all increased, showing steady demand. Prices rose across all vehicle types, with luxury vehicles and EVs seeing the biggest gains. EV prices, in particular, are growing faster than non-EVs.
While global factors like rising oil prices could create challenges later this year, the current data shows no signs of slowing in the used vehicle market.
Canada’s Auto Industry Faces Ongoing Decline Despite Signs of Stability
Canada’s vehicle assembly industry has been declining for years. Back in 2000, production was about 2.9 million vehicles, but it has steadily dropped since then. Recently, new challenges made things worse, including tensions with the U.S. over trade and weaker demand for electric vehicles.
Gas Prices Surge Nationwide Amid Rising Oil Costs
Gas prices jumped sharply across the U.S., rising 23 cents in just one week to an average of $3.68 per gallon. Prices are now 80 cents higher than last month and up 66 cents compared to a year ago.