Owning a new car is getting more expensive. Here's why
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The pandemic, supply chain issues and inflation have driven up the cost of owning a new car and experts say prices aren’t expected to return to pre-COVID levels anytime soon.
The pandemic, supply chain issues and inflation have driven up the cost of owning a new car and experts say prices aren’t expected to return to pre-COVID levels anytime soon.
“New car prices have been going up on a month over month basis since the middle of last year," said Baris Akyurek, Director of Marketing Intelligence with AutoTrader.
Data from AutoTrader found that the average price of a used vehicle in October was $37,000, 19.9 per cent higher than the year before. The average price of a new vehicle is $57,519, an 18.5 per cent increase over the year before.
Once you factor in car insurance, rising interest rates and maintenance, the cost of owning a car has increased dramatically.
Ratehub.ca, a website that compares insurance companies and their premiums, took a look at the total cost of owning a vehicle.
A study by Ratehub.ca found insurance, fuel costs and higher interest rates are all making owning a vehicle a larger financial commitment.
"Getting a car now your interest rate is going to be higher if you have a loan. It’s just the idea that people should know that owning a car now is going to be more expensive," said Matt Hands, Ratehub’s Director of Insurance.
