If you’ve been thinking about buying a new car for a while, the situation is a little better.
Sales of new vehicles are breaking records in Canada and dealer inventories are replenishing.
But prices remain very high. A new vehicle sold for an average of $67,259, according to the March AutoHebdo.net report, up 14.2% compared to 2023. As for the average auto loan, it reached $43,023 at the end of 2023 .
Used, it’s not better. The average price would be $36,637 in Quebec in February, according to AutoHebdo.net. As Canada massively exports its recent used vehicles to the United States, the vehicles offered here are often older (6 or 7 years old). And the gap between new and used is not significant for some models.
Since the pandemic, dealers have had the short end of the stick.
An improvement is looming…
But that is gradually changing: stocks are replenishing.
Even so, if you have a crush on a popular model, you could still be subjected to the questionable practices of the auto industry: dealer financing (and its often prohibitive rate, which is not indicated in advertisements) and mandatory surcharges, unforeseen costs bordering on legality, prices different from what was announced…
Still the Wild West
“It’s not yet a good time to buy, but it’s a less bad time,” comments George Iny, director of the Association for the Protection of Motorists (APA). He notes that dealer practices are the worst seen since the 1980s.
He also notes that what is being sold at the moment are largely vehicles reserved six months ago. Some are still subject to quotas, particularly in hybrids and electrics, especially at Hyundai, Kia and Toyota.
Despite everything, if you intend to shop for a new vehicle, it is preferable to do so now, to benefit from a certain margin of maneuver. In two months it will be too late.
“Half of new car sales are made between the end of April and the end of July,” continues Mr. Iny. People want a new vehicle for the summer and dealers are making an effort right now to fill their inventories. So now is the best time to buy…under the circumstances. »
ADVICE
- It’s best to shop in the fall, as dealers make room for the following year’s models and (slightly) lower their prices or become more accommodating on terms. You can also benefit from excellent offers during Black Friday.
- The best thing to do is to wait. It’s undeniably more economical to maintain a car for a decade. Once financing is complete, if you save for your next car, you’ll pay less interest.
- If you reserve a vehicle several months in advance, avoid pre-ordering. Favor the reservation deposit, which has no legal value. It does not include a vehicle identification number (VIN) or price. It is not a contract, but a promise to purchase. You will not incur any fees or penalties if you change your mind.
