Used car prices in Canada have peaked while new car prices continue to rise
It’s been a seller’s market for both new and used vehicles due to low inventory levels and surging demand. However, there are signs that used vehicle prices may have finally peaked, while the cost of new cars continues to climb steadily.
A recent survey by AutoTrader found new and used car prices in Canada remain high due to supply chain issues and microchip shortages. After 18 months of steady monthly increases, used car prices have consecutively dropped for two months in a row, but only by less than half a per cent.
In this current market, anyone who finds a vehicle they like may want to purchase it before someone else does.
“If you're looking for a car and you find the car you're looking for, we suggest you pull the trigger relatively soon," Baris Akyurek, Director of Marketing Intelligence with AutoTrader said.
AutoTrader crunched the numbers and found the average price of a new vehicle in August was $56,078. That’s an increase of 18.3 per cent over the same period last year.
The average used vehicle price in August was $37,768, an increase of 28.6 per cent higher year over year.
While new car prices continue to rise, Akyurek said there are signs the cost of used cars may have peaked and could start to trend downwards.
“We expect that prices have plateaued and they will soon start to go down slowly over the next while," he said.
The survey also found that 23 per cent of car shoppers are willing to pay more for a vehicle and 61 per cent are willing to drive farther away to find a vehicle they want to buy.
Forty-three per cent would purchase a different brand than what they were originally searching for and 36 per cent are willing to switch from new to used just to get a vehicle without having to wait.
While cars are selling twice as fast as they used to, buyers of used vehicles are still advised to go for a test drive, get an inspection and view a Carfax Report, which can inform buyers about the vehicle’s history.
“Our Carfax report include the odometer records, maintenance records, has that vehicle been involved in an accident, if the vehicle is currently reported stolen and if the vehicle has any open safety recalls," Shawn Vording, Vice President of Product and Sales at Carfax Canada said.
Vording said the vast majority of car dealerships provide a Carfax report to buyers, but those who are buying a car privately can purchase one through the company's website for a fee of $43.95 plus tax.
The automotive industry says inventory levels are starting to increase as manufacturers ramp up production and demand is dropping slightly as rising interest rates make car loans more expensive.
Even with fewer vehicles to choose from buyers should not be rushed into a buying decision. There is no cooling off period when buying a vehicle in Ontario, so don't sign any contract unless you're sure you want to follow through with the purchase.
CTVNews.ca Top Stories
BREAKING Honda to get up to $5B in govt help for EV battery, assembly plants
Honda is set to build an electric vehicle battery plant next to its Alliston, Ont., assembly plant, which it is retooling to produce fully electric vehicles, all part of a $15-billion project that is expected to include up to $5 billion in public money.
BREAKING New York appeals court overturns Harvey Weinstein's 2020 rape conviction from landmark #MeToo trial
New York’s highest court on Thursday overturned Harvey Weinstein’s 2020 rape conviction, finding the judge at the landmark #MeToo trial prejudiced the ex-movie mogul with improper rulings, including a decision to let women testify about allegations that weren’t part of the case.
Residents of northern Alberta First Nation told to shelter in place
Residents of John D'Or Prairie, a community on the Little Red River Cree Nation in northern Alberta, were told to take shelter Thursday morning during a police operation.
Monthly earnings rise, payroll employment falls: jobs report
The number of vacant jobs in Canada increased in February, while monthly payroll employment decreased in food services, manufacturing, and retail trade, among other sectors.
Doctors say capital gains tax changes will jeopardize their retirement. Is that true?
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Secret $70M Lotto Max winners break their silence
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Remains from a mother-daughter cold case were found nearly 24 years later, after a deathbed confession from the suspect
A West Virginia father is getting some sense of closure after authorities found the remains of his young daughter and her mother following a deathbed confession from the man believed to have fatally shot them nearly two decades ago.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
Metro Vancouver mayors call for serial killer Robert Pickton to be denied parole
A dozen mayors from around Metro Vancouver say federal Attorney General and Justice Minister Arif Virani should deny parole for notorious B.C. serial killer Robert Pickton, and reassess the parole and sentencing system for 'prolific offenders and mass murderers.'