Average new car price above $50,000 for the very first time

2021 was marked by an unprecedented evolution of the new and used vehicle market and ended with record prices

According to data from Canada’s largest auto market, 2021 ended with continued price growth for new and used vehicles in Canada amid stronger than ever consumer demand. In the last month of 2021, the average price of a used vehicle rose 34.5% year-over-year to $33,240, the highest price on record for a used vehicle. occasion to date. The average price of a new vehicle rose 12.7% year over year to $50,758, topping $50,000 for the first time.

Here are some key takeaways from AutoTrader.ca’s latest price index that reveals car buying and price trends that closed out the last quarter of 2021, a year marked by unprecedented changes in the market and ending with record prices:

The pandemic has allowed some Canadians to save more and increased demand from car owners

• The Bank of Canada estimates that Canadians have saved an additional $100 billion during the pandemic.

• Various pandemic-related factors, including declining interest in public transit, drove Canadians to opt for vehicle ownership early in the pandemic and this desire has continued throughout 2021.

• Les recherches d’AutoTrader.ca suggèrent que 63[erpourcentdesrépondantsquiontpuéconomiserpendantlapandémieprévoientutiliserceséconomiessupplémentairespouracheterunvéhicule;34%deceuxquienvisagentd’acheterunvéhiculeenvisagentd’acheterunvéhiculepluscherqueprévuinitialement[ercentoftherespondentswhowereabletosaveduringthepandemicplantousetheseextrasavingstopurchaseavehicle;34percentofthosewhoplantobuyavehicleareplanningtobuyamoreexpensivevehiclethanoriginallyplanned[erpourcentdesrépondantsquiontpuéconomiserpendantlapandémieprévoientutiliserceséconomiessupplémentairespouracheterunvéhicule ;34%deceuxquienvisagentd’acheterunvéhiculeenvisagentd’acheterunvéhiculepluscherqueprévuinitialement[ercentoftherespondentswhowereabletosaveduringthepandemicplantousetheseextrasavingstopurchaseavehicle;34percentofthosewhoplantobuyavehicleareplanningtobuyamoreexpensivevehiclethanoriginallyplanned

Canada’s affinity for large vehicles grows despite rising prices

Price increases in the new and used vehicle segments increased most markedly in large vehicles such as SUVs and trucks.

• A recent study by AutoTrader.ca revealed that 30% of car buyers intend to upgrade from their current car to a larger vehicle. Of those considering downsizing, nearly half (48%) intend to upgrade to an SUV, while a third (32%) said they would upgrade to a truck.

Shortage of microchips affects manufacturers around the world

• Regardless of the original manufacturer, all used vehicles saw double-digit year-over-year price increases, ranging from 24.6% for European vehicles to 45.1% for North American vehicles.

• For new cars, price increase for domestic manufacturers is up 24%, while prices for Asian and European manufacturers increased at a more moderate pace of 5.8% and 6.3% d one year to the next.

Prices rise across Canada, with Alberta leading for most expensive new vehicles

• Used vehicle prices saw double-digit growth in all regions of Canada at the end of 2021. British Columbia recorded the smallest, but still notable, increase of 29.7% year-over-year, while Ontario saw the highest growth nationally, as the average price of used vehicles rose 35.9% year-over-year other.

• Prices for new vehicles also increased nationally, ranging from 10.9% in British Columbia to 15.4% in Manitoba and Saskatchewan. The highest new vehicle prices belong to Alberta at $54,859, which could be attributed to above average interest in trucks which tend to be higher than other segments.

This story has been updated to change the title from used cars to new cars.

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