J.D. Power July report shows loans represented high percentage of total transactions

J.D. Power recently released the July edition of its Automotive Market Metrics for Canada, offering dealers some insight into how things fared last month.

The report shows that loans represented 53% of total transactions for new vehicles over the past 12 months, while cash represented 23% of transactions and leases represented 22%. For used vehicles, loans represented 22% of total transactions, which is slightly more than for new vehicles. Cash represented 43% and leases was a mere 2%.

When considering the average monthly payment per customer, new loans represented a higher amount (above $880) than the previous month. And new leases hovered around the $800 mark, having been slight above that in June.

The percent of the new vehicle loan term, 84 months and greater, reached 58% in July, which is slightly higher than nearly all other months this year — perhaps with the exception of January 2023, as those figures were much closer in comparison.

On days to turn, new vehicles hovered between 35-40 days, which is less than all  other months this year. For used vehicles, the market was above the 70-day line, which is less than all other months this year and the last six months of 2022.

J.D. Power also compared the average new vehicle prices to the customer-facing price using data from the JDPA PIN Incentive Spending Report (ISR). The data shows that the vehicle price was around $50,000, while the transaction price was above $46,000 — similar to previous months on both accounts.

As for the percent of negative equity vehicles at trade-in (for new vehicles), negative equity hovered between 12.5% and below 20%. Trade-in was between 42.5% and just below 45%. Both percentages are higher than the previous month.

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