New data from J.D. Power Canada’s Automotive Market Metrics (its March edition) reveals that loans represented 53 per cent of total transactions for new vehicles over the past 12 months. Leases represented 24 per cent, and cash payments were 22 per cent.
For used vehicles, loans represented 55 per cent, cash payments were 43 per cent, and leases only 2 per cent of total transactions.
In terms of monthly payments, on average per customer, the price paid for new loans rose from between $740 to $780 in March 2022 to between $860 and $900 a year later. Similarly, monthly payments for new leases increased from March 2022 (between $660 and $700), to between $820 and $860 in March 2023.
The new-vehicle loan term for 84 months and greater reached 57 per cent in March 2023, which was similar a year earlier. As for days to turn, new vehicles hovered around 45 in March 2023, compared to slightly below 30 a year earlier. And used vehicles reached around 80 days in March 2023 versus around 70-75 days in March 2022.
For the new vehicle price versus the customer-facing price, the data—pulled from the JDPA PIN Incentive Spending Report (ISR)—shows the vehicle price was up in March 2023, around $50,000 compared to approximately $48,000 in March 2022. The transaction price hovered around $46,000-$47,000 in March 2023, compared to approximately $44,000 a year earlier.
Finally, the trade-in percentage is similar to what it was in March 2022, while the percent of negative equity is down.