J.D. Power released its Automotive Market Metrics for Canada on December 6, which shows that the percentage of total transactions for new vehicles over the past 12 months was 54% for loans, 29% for leases, and 17% for cash payments.
The percentage of total transactions for used vehicles over the same period was 51% for loans, 47% for cash payments, and 2% for lease transactions.
In terms of monthly payments on average per customer, new lease payments rose from around $620 in November 2020 to decrease from January 2021 (when it was above $660) to May 2021 (when it declined to below $620). Lease payments were up and down since then, rising slightly in November 2021 to above $620.
For new loan payments, starting below $700 in November 2020, it then increased until February 2021 when it was around or just below $740, and reached that average again in May 2021. It decreased over the last few months only to rise slightly in October and November 2021—to around or above $700.
In November 2021, the percent of new vehicle loan terms for 84 months and greater was 56%—up from the past several months.
As for days to turn, J.D. Power’s report indicates the number declined from around 65 days in February 2021 for new vehicles, to around 40 days for November 2021.
Regarding the vehicle price versus the customer-facing price, the former was up slightly above $46,000 in November after several months below that figure. The transaction price is up to around $42,000, a slight increase from July-October 2021. The data was pulled from the JDPA PIN Incentive Spending Report (ISR).
Finally, the report also shows the percentage of negative equity for new vehicles at trade-in; negative equity is down slightly since August 2021, reaching around 42.5% in November. For the trade in percentage, November showed a slight uptick from the previous month, reaching around or slightly above 22.5%.
