J. D. Power has released its Canadian automotive market metrics for July. Although days to turn for used vehicles have remained relatively flat, days to turn for new vehicles are down almost 40% compared to July 2020.
Photo courtesy of J. D. Power
In terms of vehicle purchase type, most consumers are still choosing car loans over cash or lease transactions for new and used vehicles. Of new vehicles sold over the past twelve months, 17% were cash deals, 28% were leased and 55% involved a loan. Of the used vehicles sold during the same time frame, 2% were leased, 47% were cash deals, and 51% involved a loan.
Photo courtesy of J. D. Power
Looking at the term length of new vehicle loans, 52% had a loan term of 84 months or more, which is down slightly from July 2020.
Photo courtesy of J. D. Power
When looking at the percentage of negative equity vehicles at trade-in (new), trade-in percentages were relatively stable compared to last year, although negative equity dropped by almost ten percent.
Photo courtesy of J. D. Power
While the monthly payments on leases remained relatively flat compared to July of 2020, average monthly payments on new loans increased by approximately $35, which means consumers may be willing to take on larger monthly payments compared to a year ago.
