In looking at consumer price index data from key parts of the automotive industry, DesRosiers Automotive Consultants found that April 2024 painted a picture of increases — for the most part.
“Leading the gains was insurance premiums, the CPI for which increased 6.8% compared to April 2023,” said DAC in its update. It also found that the gasoline category experienced a 6.1% increase, and critical maintenance saw prices jump 4.2%. Within that category, parts was up 2.9%. The takeaway: an automotive aftermarket that continues to see price increases.
When it comes to vehicle prices, the story differs. The CPI for the purchase of new passenger vehicles rose a modest 1.4%, compared to April 2023. And used passenger vehicles saw CPI decline 2.3%, as of April 2024. This is a category that DAC described as having experienced “sharp price growth” during the semiconductor-related shortage period.
“While consumers have seen some easing in the price growth for vehicles themselves, the costs in the aftermarket as well as gas and insurance continued to climb,” said Andrew King, Managing Partner at DAC, in a statement. “Hopefully price pressures will continue to ameliorate, and interest rates fall further, as the automotive market enters a somewhat unsteady period.”
Also of note: the Bank of Canada cut its benchmark interest rate by 25 basis points last week — the first cut since the start of the pandemic, back in 2020.
