After several challenging years following the onset of the global pandemic, the automotive market is shifting, signaling opportune conditions for buyers. AutoTrader, a primary marketplace for vehicles, recently noted in their marketplace report that vehicle inventories, both new and used, have recovered significantly. February records showcase an overwhelming 168,000 new vehicles on the Canadian market, marking a 78% increase year-over-year.
The surge in new vehicle availability has directly impacted the used vehicle segment, leading to overflowing dealership lots. In fact, this February, there were 202,521 used vehicles available, illustrating a robust recovery and subsequent price reduction phase.
In historical terms, January 2024 saw an exceptional decrease in used vehicle prices, affecting 35% of the listed inventory, as reported by AutoTrader. This price reduction is significant, given the steady demand and the previous escalation in prices due to depleted inventories during the pandemic’s peak.
Statistics Canada supports these findings, highlighting a resurgence in vehicle sales. In December 2023, sales numbers surpassed pre-pandemic levels, with 128,193 cars and trucks sold compared to 116,466 in December 2019.
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Prices reflect these shifts. By February, the average price tags stood at $66,979 for new vehicles and $38,451 for used ones across Canada. However, in British Columbia, used vehicle prices still averaged higher mainly due to the prevalence of more expensive electric vehicles (EVs). A notable shift in the EV market has been observed as well, with a significant increase in available models and listings on AutoTrader, indicating a broader acceptance and availability of these environmentally friendly options.
Despite the increasing availability of EVs, AutoTrader’s surveys reflect a cooling interest among Canadians towards EV purchases, likely influenced by fluctuating gasoline prices and other economic factors.
Sources:
– AutoTrader’s marketplace reports and Price Data
– Baris Akyurek, Vice-President of Insights and Intelligence at AutoTrader
– Recent data from Statistics Canada
Words by: Craig Clowes
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