How much vehicles now cost in Canada

The price of new vehicles in Canada has levelled off in the last year but has still seen a significant increase in the last 10 years.

DesRosiers Automotive Consultants reported that the average price for a new vehicle at the end of 2024 surpassed $45,000 for a passenger car and almost $55,000 for a light truck.

The report suggests that higher vehicle prices could hit the market soon as a result of tariffs.

The group noted that there has been “significant growth” in the last 10 years when it comes to the average transaction price for new light vehicles. Passenger cars in 2015 sat at an average of $28,675 — that has grown to $45,813 in 2024. That’s a 60% increase.

Light trucks, meanwhile, saw a jump from $38,477 in 2015 to $54,950 last year — an increase of 43 per cent.

But both increases have calmed in the last year. The passenger car average transaction price increased 2 per cent from 2023 and the light truck average increased just 1 per cent

“A notable levelling off after the sharp increases noted for 2022 and 2023,” the analysis noted.

Quebec was the primary driver for price increases with an overall light vehicle transaction price jump of 4.5 per cent from 2023 to 2024. DesRosiers said this was most likely caused by the rush for more expensive ZEVs in the province at the tail end of 2024, prior to provincial rebates being dropped.

What comes next is to be determined as a trade war looms, said DesRosiers managing partner Andrew King.

“While we have seen some steps away from a full-scale trade war in the auto sector, the prices for new vehicles are still expected to increase in 2024,” he said. “Of course, the exact scale of these changes remains to be seen as the situation continues to be in flux and the U.S. administration pursues its ‘shoot first, aim later’ policies.”

Separately, Bloomberg reported that it had seen a memo sent to dealers by Ford announcing vehicles built in Mexico would see a price increase of up to $2,000, effective May 2. This would affect newly built Mavericks, Bronco Sports and the Mustang Mach-E.

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