In April 2024, according to an analysis by DesRosiers Automotive Consultants, notable trends were observed within the automotive sector’s consumer price index (CPI). Insurance premiums led the increase, surging by 6.8% from April 2023. The report also highlighted a 6.1% rise in gasoline prices and a 4.2% uptick in costs related to critical maintenance, with automotive parts prices increasing by 2.9%. This data signals a continuing upward trend in prices across the automotive aftermarket.
Conversely, vehicle prices presented a varied picture. The CPI for new passenger vehicles showed a modest increase of 1.4% over the previous year. However, used passenger vehicles experienced a 2.3% decline in CPI, a shift from the significant price increases during past periods of semiconductor shortages.
Andrew King, Managing Partner at DesRosiers Automotive Consultants, commented on the mixed developments, noting that while vehicle prices are stabilizing somewhat, other costs such as aftermarket expenses, gasoline, and insurance continue to rise. He expressed hope that price pressures in the automotive market might lessen and that interest rates might continue to decline. This comes after the Bank of Canada’s recent decision to cut its benchmark interest rate by 25 basis points, marking the first reduction since the onset of the pandemic in 2020.
For a detailed exploration and further updates, please refer to the findings published by DesRosiers Automotive Consultants.
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Words by: Craig Clowes
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