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.
