Average New Vehicle in Canada Now Costs a Whopping $66,288
Inflation is wreaking havoc across the auto industry, and the latest numbers are pretty hard to believe. Are you ready for this? The average new vehicle in Canada now costs a whopping $66,288.
It’s a massive year-over-year increase of 21.3 percent according to AutoTrader’s June 2023 price index report.
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Back in late 2019, before the pandemic and everything, the average price stood at $40,490, so that represents an increase of 68.6 percent in less than four years. Yikes.
As you can see on the illustration above, consumers in Quebec and the Atlantic region are paying less than those in Ontario and Western Canada. The average new car right now is priced at $56,264, the average new SUV is $61,285, while the average new pickup is $75,072.
“Despite an increase in new vehicle inventory, overall availability remains well below prepandemic levels and remains inconsistent among different auto manufacturer,” the AutoTrader report points out. “New vehicle sales, however, have been keeping pace with inventory levels, indicating a substantial pent-up demand in the market.”
What about used vehicles? In June 2023, the average price remained steady compared to May at $39,645, but it still marked a 4.1 percent year-over-year rise.
A study by DIG Insights recently showed that 28 percent of Canadians intend to buy a vehicle in the next six months compared to 24 percent in the fall of 2022. Among the top economic concerns affecting their purchase decision are inflation (80 percent), high vehicle prices (79 percent), and high gas prices (75 percent). Elevated interest rates (73 percent) and inventory shortages (69 percent) are next.