The boom in the car market appears to be showing signs of running out, even as new vehicle prices continue to rise.
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The December statistics report from resale site AutoTrader.ca shows that the increase in the average price of new vehicles has been less pronounced for two months and that, in the case of American cars, it has even experienced a download for the first time. in 20 months, that is, from March 2021. The decline is modest, 0.6 percent in December compared to November. In annual terms, it remains six percent higher than a year ago, but remains the first decline in a long time.
At the same time, the drop in the average price of used vehicles, which started last June, is undeniable and was maintained in December. At the time, the drop was 1.2 percent from the previous month, but a used vehicle still cost nine percent more, on average, than a year earlier.
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Strong demand amid tight supply is keeping prices high, but rising inventories show the auto sector is starting to recover from a pandemic-induced inventory shortage.
So for new vehicles, inventories are rising in all categories, although retailers are still far from Q1 2021 levels. One category is an exception: light trucks, whose inventories exceed from the beginning of 2021, and have for one year.
With used vehicles, buyers are seeing options again. SUV inventory is now well above the level of two years ago, despite a slight drop in the last quarter of 2022. As for used cars, even if inventory remains below the level of two years ago years, rebounded after a slight decline in the third quarter. Light truck inventory fell slightly, but remains well above two years ago.
Although it is in Quebec where the average price of new and used vehicles has seen the largest year-over-year increases (21% for new and 14% for used respectively), prices averages remain the second lowest in the country ($55,660 and $33,551 respectively), with only the Atlantic provinces showing lower prices.
Alberta shows the highest average price for new vehicles at $63,231, while British Columbia takes the prize for used vehicles, with an average price of $40,553.
