The average transaction price for a new light vehicle in Canada surpassed the $50,000 mark for the first time ever, according to DesRosiers Automotive Consultants.
This is a first for the Canadian market. DAC said the light truck average for the third quarter, year-to-date, came in at an estimated $54,000 — with passenger cars coming in at just under $46,000. With light trucks accounting for 85.5% of the market year-to-date, the average transaction price for the light vehicle market overall soared to a very notable $52,900, year-to-date.
“New light vehicle transactions have been getting more expensive as a result of semiconductor shortages, the growing share of (electric vehicles), a shift to light trucks, and broader inflationary pressures,” said Andrew King, Managing Partner at DAC, in a statement. “These factors together have led to a $10,000 increase in average light vehicle transaction prices over the last four years.”
Used vehicle prices may have helped some consumers with the equity of their trade-in, but the rise in new vehicle prices paired with high interest rates is paving the way for a challenging market environment that many analysts will be watching closely in the new year.
