A report by AutoTrader on consumer behaviours in 2024 shows the average price of a car went down compared to the year before. Nationwide, new cars went down three per cent last year with an average price of $65,219.
Tristan Mariano, group general sales manager at Carget Automotive says it’s a sign of the rebound from COVID.
“During COVID, there were no cars,” he said. “Nobody was making cars, so the demand for cars went up, everybody got used. Now with the demand kind of settling down, inventory’s getting back up.”
The report combines data from Manitoba and Saskatchewan which were slightly less than the national average.
“On the new side, the prices are down by 1.4 per cent, and the average price is $65,049,” said Baris Akyurek, vice president, insights intelligence at AutoTrader.
According to the report, Canada saw a 12 per cent drop in average price for used cars, the largest decrease year-over-year on record.
“For Manitoba and Saskatchewan, used car prices were down by 4.7 per cent on a year over year basis, and the average price is $36,272.”
There has been a three-year decline in interest for electric vehicles (EV), from 68 per cent in 2022 to 46 per cent last year.
Local dealers say it might still be too early for the electric vehicle.
“It’s really a case by case,” said Mariano. “But I don’t think Saskatoon’s ready for the EV yet. We don’t have enough chargers, and just even with the weather being minus 30, minus 40. These batteries, they don’t last long in the cold.”
But with lower demand and a continuous supply, Akyurek says the price of EVs could come down in the near future.
“Inventory has been going up, so what happens? The demand is low and the supply is high, prices start to come down in both the new and used side.”
Looking ahead, the looming cloud of tariffs could cause a shift in demand, and a rise in prices.
“What we are expecting to see is that there’s going to be an increase in new car prices, which is obvious, right?” Akyurek said. “Parts go back and forth between the three countries in North America quite frequently, sometimes up to eight to nine times. So prices will go up, and assuming that the demand stays as it is, what we are expecting to see is that the new car demand will shift to used.”
Mariano says the effect could be significant.
“We’re not sure if it’s going to hit the cars,” he said. “But if it does, 62 per cent of Canada’s imports and inventory comes from the U.S. so if tariffs get in on those, prices are going to go up.”
The United States poised to impose 25 per cent tariff on Canadian goods beginning Saturday.
