There’s some relief in sight for car shoppers. Inventory is up and prices for new and used vehicles are dropping in Canada, especially for electric vehicles and used luxury vehicles, according to AutoTrader’s latest . “For the first time in over three years, we’re seeing a decline in new car prices on a year-over-year basis,” said Baris Akyurek, vice-president of insights and intelligence at AutoTrader, an online marketplace for new and used vehicles.
In July, 2024, the average price for a new car was $66,812 – that’s a 0.7-per-cent decline. On the used side, the average price dropped to $36,075 – an 8.
7-per-cent decrease. The second-quarter report also shows a significant rise in vehicle inventory, which has helped to stabilize new vehicle prices. “Although we’re still below 2019 levels, [new car inventory is] up 70 per cent on a year-over-year basis.
We are somewhat normalized in terms of overall new inventory figures,” Akyurek said. With the increase of new vehicle availability, stabilizing prices and two recent interest rate cuts from the Bank of Canada, affordability is improving for Canadian consumers. The cost of borrowing and average monthly car loan payments are coming down slowly.
The average monthly car payment was $624 in June, 2024. Even though that figure is still 34-per-cent higher than in 2019 – it has been decreasing gradually, falling by about $30 since it peaked at $652 in October, 2023. Faced with higher prices for the previous four.