A new report from J.D. Power reveals that loans represented 51 per cent of new vehicle transactions in Canada over the past 12 months, whereas cash represented nearly half that amount at 26 per cent and leases were 23 per cent.
That is according to the company’s Canadian automotive market metrics for April 2024, which also showed that loans represented 53 per cent of used vehicle transactions within the country over the past 12 months. Cash represented 45 per cent, and leases were a mere 2 per cent.
On average monthly payments per customer, data shows that new loans were around $850-870 in April — about the same as the previous month and less than a year ago. For new leases the average hovers around $730-750, which is more than the prior month and less than April 2023’s above $800.
For the new vehicle loan term (84 months and greater), April reached 57 per cent compared to March’s slightly higher percentage and similar levels from a year ago. J.D. Power’s data also highlights the days to turn for new vehicles: slightly more than 50, which is less than March of this year and more than April 2023’s around 40 days. For used vehicles the days to turn is about 80: also slightly less than March 2024 and more than April 2023’s below 80.
Also worth mentioning is the new vehicle price versus the customer-facing price, based on data from the JDPA PIN Incentive Spending Report (ISR). The vehicle price in April was above $48,000 (down from both March 2024 and April of last year), while the transaction price hovered around $45,000 — about the same as last month and down from the plus-$46,000 of April 2023.
Lastly, on the percentage of negative equity vehicles at trade-in, the latter was slightly below 45 per cent. For negative equity, it was about 20 per cent.
