A recently released AutoTrader.ca Price Index reveals the longer-term pandemic impact on pricing due to higher consumer demand and a global supply shortage for new vehicles.
Prices for both new and used vehicles are up month-over-month, when looking specifically at September 2021 figures. “Throughout the third quarter of 2021, our data demonstrated a gradual increase for both used and new vehicles,” said the company in its report.
MOM the national average price of a new vehicle is up 0.4% and 5.3% year-over-year, reaching $47,580. For used vehicles, the national average price is up 2.7% MOM and 19.4% YOY to reach $30.158.
“Before the COVID-19 pandemic, prices typically increased at the beginning of the year and gradually declined thereafter (excluding new car prices for upgrades to existing models),” said AutoTrader.ca, later adding that “in 2021, the average price of a used vehicle increased by 10.4%.”
“There is no doubt this trend reversal is directly due to the impacts of the COVID-19 pandemic, most notably recent inventory shortages brought about by the global microchip shortage, coupled with strong consumer demand,” said AutoTrader.ca.
Body type
By body type, the national average price is $35,312 (down 1.5% YOY) for new cars, and $20,065 (up 16.2% YOY), for used cars.
For SUVs, the national average price is $48,143 (up 7.7% YOY) for new, and $30,216 (up 12.8% YOY) for used.
For trucks, the national average price is $62,845 (up 5.1% YOY) for new, and $43,021 (up 19.9% YOY) for used.
Price by OEM origin
The average price by manufacturer of origin is $56,849 (up 13.4% YOY) for new vehicles for North American OEMs, and $33,868 (up 35.3% YOY) for used vehicles.
For Asian OEMs, the price sits around $34,896 (up 1.5% YOY) for new vehicles, and $22,079 (up 14.1% YOY) for used vehicles.
For European OEMs, the price sits at $63,125 (up 2.0% YOY) for new vehicles, and $42,547 (up 11.3% YOY) for used vehicles.
Price by Canadian region
Per province, the national average price for a new vehicle is $50,977 (down 0.4% MOM but up 6.7% YOY) in British Columbia, and $34,885 (up 2.8% MOM and 19.7% YOY) for a used vehicle.
In Ontario, the price sits at $46,573 for new vehicles (up 1.3% MOM and 5.9% YOY) and $30,492 (up 2.9% MOM and 18.4% YOY) for a used vehicle.
In Quebec, the national average price for a new vehicle is $43,449 (down 0.2% MOM but up 5.0% YOY) and $26,521 (up 2.5% MOM and 20.2% YOY) for a used vehicle.
In Saskatchewan and Manitoba, it is $51,117 (up 0.6% MOM and 8.0% YOY) for a new vehicle, and $31,761 (up 3.2% MOM and 18.5% YOY) for a used vehicle.
For Alberta, the national average price for a new vehicle is $51,873 (up 0.7% MOM and 3.9% YOY) and $34,844 (up 2.2% MOM and 21.1% YOY) for a used vehicle.
And as for the Atlantic region, the price is around $41,739 (up 0.5% MOM AND 7.1% YOY) for a new vehicle and $26,384 (up 2.0% MOM and 15.8% YOY) for a used vehicle, again when considering the national average.
The national top searched vehicles starts with the Ford F-150, followed by the Honda Civic and Ford Mustang. In fourth place is the BMW 3 Series, followed by the Toyota RAV4, Porsche 911, Mercedes-Benz C-Class and then E-Class, the Honda CR-V, and the Chevrolet Corvette.
“The global microchip shortage on the new vehicle market also has impacts on the used segment, where as a result of less new car inventory, there is a corresponding decline in trade-ins and fleet returns,” said AutoTrader.ca. “Moreover, Canada continues to export over 300,000 vehicles south of the border each year, which in turn adds pressure to the used car market, especially given the lack of inventory.”
They said the combination of these factors appears to be the main driver behind the increase in average vehicle prices in Canada.
