ADESA Canada Creates Used Vehicle Price Index for the Canadian Remarketing Industry
ADESA Canada announced on March 31 the launch of the ADESA Canada Used Vehicle Price Index (the Index), the first economic indicator to be developed specifically for the Canadian vehicle remarketing industry.
The Index, which is based on used vehicle sales figures of between 90 percent and 100 percent of the Canadian market, was developed by ADESA Canada in partnership with ALG Canada.
ADESA Canada is a provider of wholesale used vehicle auctions in Canada. The Index is calculated from sales data from ADESA Canada’s auctions with the addition of used vehicle auction sales data purchased through the National Auto Auction Association (NAAA). The data is adjusted for variables, including type of vehicle, mileage, age, and season. A statistical filtering process excludes extreme values in the raw data. The resulting Index depicts the trend of used vehicle prices in Canada.
In Canada, leasing comprises a significant percentage of total new vehicle sales — far larger than in the U.S. The large leasing volumes in Canada heighten the industry’s focus on residual and resale values. However, until now, an Index based exclusively on Canadian sales data from a statistically significant number of Canadian vehicle sales did not exist. The ADESA Canada Used Vehicle Price Index will enable the industry to better forecast residual and resale values and to better forecast the effect of new vehicle sales incentives, exchange rate fluctuations, interest rate changes, changes in supply and other variables on used vehicle prices.
ADESA Canada intends to distribute the Index with commentary on a monthly basis via its web site at www.adesa.ca, via email to a select group of its customers and through Canada NewsWire.