Canadian used car prices rise

Used-cars-300Used car prices in Canada have gone up, spurred by shopping across the border, reported Scotiabank.

“Canadian used car prices have resumed their upward trajectory as rising demand for pre-owned models from Canadian households and foreign buyers have far exceeded a moderate increase in used vehicle supplies,” said Carlos Gomes, Senior Economist and Auto Industry Specialist at Scotiabank, in the latest Scotiabank Global Auto Report.

“In particular, the depreciation of the Canadian dollar over the past year has led to a surge in the number of used vehicles exported to the U.S.,” he added.

The report said used vehicle exports, excluding pickup trucks, are on target to approach 100,000 units this year. That’s up from an average of 69,000 per year since 2010.

Exports have also climbed in every province, with Ontario continuing to dominate exports to the U.S., said Scotiabank.

But the Scotiabank report also said that despite used cars prices rising year-over-year in recent months, used vehicle affordability in Canada remains at its highest level on record.

Vehicle sales continue to be at record highs in Canada and Mexico, said Gomes. Gains are largely driven by an increase in lease activity, particularly in Quebec and British Columbia. This has led Scotiabank to increase its annual 2015 Canadian sales forecast to 1.87 million units, up from 1.855 million.

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