The consumer factors impacting the aftermarket
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High vehicle prices and a call for more workdays at the office: All signs that the automotive aftermarket is working from a position of strength amid all the economic uncertainty.
As transaction prices for new vehicle for light trucks — which accounted for 88 per cent of new vehicle sales in the first quarter of 2025 in Canada — climbed to nearly $55,000 at the end of 2024 and passenger vehicles eclipsed $45,000, consumers are increasingly turning to aftermarket repairs to keep their aging vehicles on the road.
These high costs are putting car ownership out of reach for many households. This financial squeeze is forcing consumers to make tough choices about vehicle maintenance and replacement. As economic uncertainty continues, the automotive aftermarket appears poised to provide essential services for budget-conscious consumers struggling with high vehicle costs, industry leaders said during this year’s Auto Care Connect in Phoenix.
“The price is not reasonable for most households,” said Olivia Newton, vice president of category management at N.A. Williams Company.
Online used car retailer Clutch found the national average price for a used vehicle has reached $33,082 in Canada.
“This bodes well for people maintaining what they have and continuing to invest in repairs,” Newton said.
However, higher repair costs can also hinder the aftermarket. A survey conducted by the Auto Care Association found that cost remains the primary barrier for consumers considering vehicle repairs. Two-thirds of consumers cite high prices as the reason they don’t complete recommended services after diagnostic tests.
Getting these repairs done could soon become more crucial for vehicle owners if they’re expected to use their vehicle more for their commute or other personal needs. While remote work has stabilized around pre-pandemic levels, many are adapting to hybrid work models.
Michael Chung, senior director of market intelligence at Auto Care Association, noted that people are travelling differently and getting behind the wheel instead of taking to the sky.
“People are now driving to the beach, taking road trips to national parks or driving to visit family instead of flying,” Chung said, adding that his cultural shift has increased vehicle wear and tear, creating more opportunities for aftermarket repairs.
The survey showed promising news for the auto care sector. Consumers increasingly prefer aftermarket parts for three key reasons: Lower costs, better availability, and ease of acquisition.
“We want consumers to have choices,” Newton said. “Even if you can’t afford the best part, you can find a good, safe option that will work for your vehicle.”
Image credit: Depositphotos.com
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