Average new car price in Canada now tops $66K

At the height of the pandemic, many car dealerships had empty lots and customers waiting for orders as factories had to shut down due to supply chain issues and a shortage of microchips. Now, due to low inventory levels and a surge in demand, new and used car prices continue to rise.

At the height of the pandemic, many car dealerships had empty lots and customers waiting for orders as factories had to shut down due to supply chain issues and a shortage of microchips.

Now, due to low inventory levels and a surge in demand, new and used car prices continue to rise.

The Price Index Report of New Vehicles by AutoTrader found the average new vehicle price in June 2023 was $66,288, a 21.3 per cent increase over June 2022.

The average used vehicle price was $39,645, a 4.1 per cent increase over the same time last year.

AutoTrader said that not only do both new and used vehicles cost more, but consumers also need more time to pay for them.

"Loan terms have increased over the past four years. Going back to June of 2019, it was 68 months, and now it is 72 months. Consumers are paying more for vehicles and taking longer to pay for them," said Baris Akyurek, Vice President of Insights and Intelligence with AutoTrader.

It's not just price; many car buyers choose to buy used vehicles because the new ones they want are unavailable.