Source: J.D. Power Automotive Market Metrics, July 2024
Dealers in Canada may be interested to learn that loans represented 50% of the percent of total transactions for new vehicles over the past 12 months, with leases and cash payments taking up 25% each.
That is according to J.D. Power’s Automotive Market Metrics for July, which found that loans made up 53% of the transactions for used vehicles during that period, followed by cash payments at 45% and leases at 2%.
The report also revealed that new loans hovered above the $880 mark for monthly payments, on average per customer, while new leases sat somewhere between $760-$800. July also saw the percent of the new vehicle loan term, 84 months and greater, reach 56% — similar to June 2024, and slightly less than prior months this year (with the exception of January).
As for days to turn, used vehicles dipped from previous months to hover just below 80 days. New vehicles reached above 50 days, more than prior months and the same period a year earlier.
For the new vehicle price versus the customer facing price, J.D. Power’s report — which pulls data from the JDPA PIN Incentive Spending Report (ISR) — found that the vehicle price for July was just above $48,000, similar to the last few months. The transaction price, below $46,000, was slightly less than the prior month. Both, however, hovered close to the $46,000 mark.
Lastly, negative equity was at 20% in July, similar to June and more than in July 2023. Trade-in was close to the 42.5% mark, which is more than last month and a year earlier.
