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Globe and Mail
3 days ago
- Automotive
- Globe and Mail
Time to buy a shiny new car? Used vehicle prices are rising
Canadians shopping for a brand new car may be surprised that prices have dropped compared with a year ago, while those looking for used vehicles could pay thousands of dollars more than last summer, according to a new report. That said, prices are expected to jump for both vehicle types in the second half of the year, says the AutoTrader report released last week. Used vehicle prices jumped 3.6 per cent year-over-year in June, hovering at an average of $37,664, the report shows. That's compared with a 12-per-cent dip in the used car market throughout 2024. On the other hand, new vehicle prices dipped about 3.5 per cent year-over-year in June, to $64,445. Amazon wants to sell you cars online. Here's what it could mean for shoppers and auto sellers in Canada 'It's not what we expected to see,' said Baris Akyurek, vice-president of insights and intelligence at AutoTrader, about both used and new cars. 'Usually, [used car] prices start on the higher side, and come down throughout the year,' he added, while new car prices usually go up slightly, commensurate with inflation. But that trend reversed in March as a result of fears of American tariff igniting Canadian demand and exacerbating inventory shortages in used vehicles, though demand is catching up in the new car market as well. The inventory of used cars has slumped 16.8 per cent year-over-year because of surging demand and a persisting supply gap created during the COVID-19 pandemic. Between 2020 and 2023, approximately 1.5 million fewer new cars were sold in Canada owing to production disruptions, Mr. Akyurek said. The decline in new car sales meant that fewer vehicles trickled down into the used car supply, and that is now showing up as a lingering inventory shortage. In contrast, new car inventory was high at the start of 2025, with about 87 days of supply available, significantly above the industry norm of 60, Mr. Akyurek said. This surplus was the result of production finally catching up post-COVID, combined with slightly softer demand earlier in the winter. 'Then obviously Trump comes to power, and these tariff conversations come about,' he said. 'Everybody was talking about doom and gloom scenarios, like 'Oh, within a week, there won't be any cars produced … that scared consumers off.' In a February AutoTrader survey, 47 per cent of respondents said tariffs would impact their purchases, and 31 per cent said they would switch from new to used vehicles. With shoppers fearing higher prices for any cars, many rushed toward the used market, where prices were generally cheaper but inventory was already constrained. 'New vehicles prices are decreasing as older inventory is being sold first in expectation that newer inventory will be impacted by tariffs,' said Daniel Ross, senior manager of industry insights and residual value strategy at Canadian Black Book. Buying a used car is harder than it used to be and it's likely to get worse At the same time, demand for both types of vehicles has been steadily eroding the higher inventory cushion in the new vehicle market. New vehicle inventory has now fallen 12 per cent year-over-year in June, according to AutoTrader. Regionally, Ontario stands out as the only province where used car prices declined slightly in June. 'That might be related to the inventory composition, might be related to where the demand is and the cars that are available in Ontario,' Mr. Akyurek said. Used vehicle prices in Canada have already risen for four consecutive months and now sit above 2024 levels, setting the stage for continued price increases through the second half of 2025 if demand continues. AutoTrader data also showed that prices for both new and used electric vehicles have been falling across the board, with demand slumping as governments cut incentives for zero-emission vehicles. ZEV sales dipped 45 per cent in March and close to 30 per cent in April. For car shoppers, Mr. Ross said it's a better time to buy a new vehicle, as financing incentives are attractive and certain brands are eager to reduce inventory. Average new car interest rates now hover around 5.4 per cent, down from 6.6 per cent in June, 2024, Mr. Akyurek said. However, it's not a great time for a used car purchase, Mr. Ross said: 'Prices have already gone up, and we could see them start to fall in the last quarter of the year.'
Toronto Sun
3 days ago
- Automotive
- Toronto Sun
Used car prices up, new car prices down in 2025's second quarter: AutoTrader
AutoTrader's price index report for the second quarter shows used vehicle prices going against seasonal norms and increasing in price compared to the same time last year while new vehicle prices continue to decline year-over-year. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Since March, consumer behaviour has been driven by what AutoTrader calls the 'pull-forward' effect, where vehicles were bought ahead of anticipated U.S. tariffs, tighter inventory, and rising prices. As of June 2025, the report shows used vehicle prices have jumped 3.6% year-over-year, landing at an average of $37,664, while new vehicle prices have dropped 3.5% to $64,445. AutoTrader says with prices for both new and used vehicles expected to rise in the second half of 2025, early buying could be a smart strategy. The report also says new vehicle inventory held steady early in the year, keeping prices in check; however, inventory is now down 12% year-over-year leading to used vehicle prices rising for four consecutive months and now sitting above 2024 levels with continued price increases expected through the second half of 2025. This advertisement has not loaded yet, but your article continues below. Used car inventory is down 16.8% and demand surging so if new vehicle availability dips further, expect even more Canadians to turn to used vehicles — driving prices higher still. Read More Electric Vehicles (EVs) are proving to be the exception with prices for both new and used EVs falling as demand for them cools due to federal incentive cuts and policy uncertainty. AutoTrader says ZEV (Zero Emission Vehicle) sales plunged nearly 45% in March and over 28% in April, and data shows confidence in EV adoption is starting to slip. RECOMMENDED VIDEO Columnists Toronto Maple Leafs Toronto & GTA Toronto & GTA World
South Wales Guardian
5 days ago
- Automotive
- South Wales Guardian
Registrations of new cars down by 5% in July as drivers delay EV purchases
The Society of Motor Manufacturers and Traders (SMMT) said 140,154 new cars were registered last month, down 5% from 147,517 during July 2024. Battery electric vehicles (Bevs) held a 21.3% share of the new car market last month. At least 28% of new cars sold by each manufacturer in the UK this year are required to be zero emission – which generally means pure electric – under the Government's zero emission vehicle mandate. The first electric car models eligible for new Government grants were announced on Tuesday. Drivers will be able to save £1,500 with the purchase of new Citroen e-C3, e-C4, e-C5 and e-Berlingo cars. These are the first models approved under the new £650 million electric car grant. The scheme will enable motorists purchasing a new electric car to save either £1,500 or £3,750, depending on the vehicle's sustainability. SMMT chief executive Mike Hawes said: 'July's dip shows yet again the new car market's sensitivity to external factors, and the pressing need for consumer certainty. 'Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch. 'That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.' The SMMT slightly upgraded its forecast for full-year new car registrations, to 1.9 million. Registrations in 2024 reached 1.95 million. Bevs are forecast to hold a full-year market share of 23.8%. Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said the grant has provided a 'much-needed boost' for consumer interest in new electric cars, with EV consideration up 10 percentage points on Auto Trader. But the unveiling of the initiative on July 14 explains why it was a 'slow' month for sales as buyers 'wait to see just which models will get what level of grant'. He added that discounts – either through the grant or by brands cutting prices themselves – will 'trickle through to EV sales in the coming months'. Dan Caesar, boss of lobby group Electric Vehicles UK, said it is 'testament to consistent consumer interest' in EVs that one in five new car sales is fully electric, 'especially given that some car shoppers will have paused their purchases until there's more clarity about the electric car grant'. John Lewis, chief executive of EV charging company said the transition to electric motoring is 'clearly gaining pace' but warned this increases the need to 'ensure fair and convenient access to charging', particularly for the 40% of drivers without off-street parking at home.
Powys County Times
5 days ago
- Automotive
- Powys County Times
Registrations of new cars down by 5% in July as drivers delay EV purchases
Registrations of new cars stalled in July as many drivers delayed purchases of electric vehicles (EVs) until Government grants are rolled out. The Society of Motor Manufacturers and Traders (SMMT) said 140,154 new cars were registered last month, down 5% from 147,517 during July 2024. Battery electric vehicles (Bevs) held a 21.3% share of the new car market last month. At least 28% of new cars sold by each manufacturer in the UK this year are required to be zero emission – which generally means pure electric – under the Government's zero emission vehicle mandate. The first electric car models eligible for new Government grants were announced on Tuesday. Drivers will be able to save £1,500 with the purchase of new Citroen e-C3, e-C4, e-C5 and e-Berlingo cars. These are the first models approved under the new £650 million electric car grant. The scheme will enable motorists purchasing a new electric car to save either £1,500 or £3,750, depending on the vehicle's sustainability. SMMT chief executive Mike Hawes said: 'July's dip shows yet again the new car market's sensitivity to external factors, and the pressing need for consumer certainty. 'Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch. 'That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.' The SMMT slightly upgraded its forecast for full-year new car registrations, to 1.9 million. Registrations in 2024 reached 1.95 million. Bevs are forecast to hold a full-year market share of 23.8%. Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said the grant has provided a 'much-needed boost' for consumer interest in new electric cars, with EV consideration up 10 percentage points on Auto Trader. But the unveiling of the initiative on July 14 explains why it was a 'slow' month for sales as buyers 'wait to see just which models will get what level of grant'. He added that discounts – either through the grant or by brands cutting prices themselves – will 'trickle through to EV sales in the coming months'. Dan Caesar, boss of lobby group Electric Vehicles UK, said it is 'testament to consistent consumer interest' in EVs that one in five new car sales is fully electric, 'especially given that some car shoppers will have paused their purchases until there's more clarity about the electric car grant'. John Lewis, chief executive of EV charging company said the transition to electric motoring is 'clearly gaining pace' but warned this increases the need to 'ensure fair and convenient access to charging', particularly for the 40% of drivers without off-street parking at home.
North Wales Chronicle
5 days ago
- Automotive
- North Wales Chronicle
Registrations of new cars down by 5% in July as drivers delay EV purchases
The Society of Motor Manufacturers and Traders (SMMT) said 140,154 new cars were registered last month, down 5% from 147,517 during July 2024. Battery electric vehicles (Bevs) held a 21.3% share of the new car market last month. At least 28% of new cars sold by each manufacturer in the UK this year are required to be zero emission – which generally means pure electric – under the Government's zero emission vehicle mandate. The first electric car models eligible for new Government grants were announced on Tuesday. Drivers will be able to save £1,500 with the purchase of new Citroen e-C3, e-C4, e-C5 and e-Berlingo cars. These are the first models approved under the new £650 million electric car grant. The scheme will enable motorists purchasing a new electric car to save either £1,500 or £3,750, depending on the vehicle's sustainability. SMMT chief executive Mike Hawes said: 'July's dip shows yet again the new car market's sensitivity to external factors, and the pressing need for consumer certainty. 'Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch. 'That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.' The SMMT slightly upgraded its forecast for full-year new car registrations, to 1.9 million. Registrations in 2024 reached 1.95 million. Bevs are forecast to hold a full-year market share of 23.8%. Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said the grant has provided a 'much-needed boost' for consumer interest in new electric cars, with EV consideration up 10 percentage points on Auto Trader. But the unveiling of the initiative on July 14 explains why it was a 'slow' month for sales as buyers 'wait to see just which models will get what level of grant'. He added that discounts – either through the grant or by brands cutting prices themselves – will 'trickle through to EV sales in the coming months'. Dan Caesar, boss of lobby group Electric Vehicles UK, said it is 'testament to consistent consumer interest' in EVs that one in five new car sales is fully electric, 'especially given that some car shoppers will have paused their purchases until there's more clarity about the electric car grant'. John Lewis, chief executive of EV charging company said the transition to electric motoring is 'clearly gaining pace' but warned this increases the need to 'ensure fair and convenient access to charging', particularly for the 40% of drivers without off-street parking at home.
