For a 12 months and a half, automotive consumers have confronted excessive costs and a scarcity of stock at dealerships, attributable to a worldwide microchip scarcity. However there are lastly indicators that costs within the used automotive market could also be peaking.
The common value of a used automotive listed on AutoTrader.ca fell 0.4 per cent for 2 consecutive months after peaking in June at $38,097. These declines additionally marked the primary time in 18 months that used automotive costs fell.
“Based mostly on what’s taking place available in the market, we imagine the height has been reached after which going ahead, (costs) are going to plateau and soften over the following few months,” Baris Acurek, director of promoting intelligence at AutoTrader.ca, instructed CTVNews. .ca Friday.
Used car inventories have additionally rebounded, AutoTrader information exhibits. Though sedans and hatchbacks noticed a slight lower in stock within the second quarter of 2022, SUV stock elevated by 35.7 p.c from the earlier quarter, whereas truck stock elevated by 123.8 p.c.
“Used stock has improved rather a lot because the starting of the 12 months,” Acurek defined. “In comparison with final 12 months’s degree, we’ve got extra used automotive stock year-over-year.”
However however, the costs of recent vehicles are on the rise and present no indicators of slowing down. In July 2022, the typical new automotive listed on AutoTrader.ca was $55,469, up 1.5 p.c from the earlier month and up 18 p.c from the earlier 12 months. On prime of that, new automotive stock continues to slip.
“I believe the tales are considerably completely different in new and used. That is why new costs are going up, as a result of while you take a look at the market, stock continues to be restricted. However however, while you take a look at the used aspect of issues, issues are beginning to plateau slightly bit,” Acurek mentioned. mentioned
Canadians Adjusting to Larger Automobile Costs: Survey
Acurek mentioned persistently excessive costs and low availability have pressured customers to alter their shopping for habits. In a survey performed by Autotrader, 61 p.c of customers indicated they’d journey greater than 400 kilometers to get the car they need, up from 41 p.c within the earlier 12 months’s survey.
“I believe the extra you look into the marketplace for a automotive, the extra you notice there are particular limitations available in the market,” he mentioned.
Moreover, final 12 months’s survey discovered that 27 p.c of respondents on the lookout for a brand new car have been prepared to buy a brand new car given the lengthy wait occasions and low stock at many dealerships. This 12 months, 36 p.c of respondents answered “sure” to that query.
Within the present automotive market, Acurek mentioned it is extra necessary than ever for automotive consumers to do their analysis.
“I like to recommend you do your analysis, know your price range,” he mentioned. “So while you discover a automotive, you pull the set off as a result of that automotive won’t be there while you examine subsequent week.”