Intent to buy a new vehicle among Canadian consumers is up and by not being shy about returning to dealerships for a new set of wheels, the average price continues to go up.
AutoTrader reported a new car in Canada was priced at $66,288 in June. That’s up 2.2 per cent from May and 21.3 per cent from the same time last year.
“With more new vehicles reaching dealer lots and robust consumer demand, vehicle prices are responding to market dynamics, resulting in year-over-year price increases for both new and used vehicles,” the June 2023 Price Index report said.
It also noted a light increase in used prices, which are now being tagged on average at $39,645, up 0.3 per cent from May and up 4.1 per cent from June 2022.
Used prices are stabilizing as new car sales increase. “Along with the improvement in new car availability, however, there has been a positive development in used inventory levels contributing to the stabilization of used vehicle prices in recent months,” AutoTrader explained.
More people are willing to trade in their older vehicles as well as return their leased ones, adding to used inventory.
Still, overall availability of new vehicles remains inconsistent across the country and well below pre-pandemic levels. Sales have been keeping up with inventory, indicating demand is still strong.
“If demand continues to exceed supply, we anticipate that new vehicle prices will not experience significant fluctuations,” the report said. “Used vehicle prices are hovering just below the $40K mark since the beginning of the year. Although used inventory levels have improved in the past couple months, given the robust demand, it might take a while to see a meaningful softening in used prices.”
Consumers out west are looking at the highest prices for new vehicles, taking up the top three spots. Alberta leads the country at $69,764 (up 18 per cent from June 2022). British Columbia is second at $67,827 (up 19 per cent) followed by Manitoba and Saskatchewan at $66,503 (up 17 per cent). Ontario’s average price is $64,807 (up 22 per cent).
While Quebec is the second-cheapest province for new vehicles ($64, 215), prices are up 27 per cent from one year ago.
Atlantic Canada has the cheapest priced vehicles at $59,419.
The Ford F-150 was the top-searched vehicle. Its average new price is $78,928 with a used average of $45,873.