Despite inventory being on the path to recovery following pandemic supply-chain snafus, Canadians looking to buy a new car shouldn’t expect much relief in the auto market, with high interest rates the latest hurdle for buyers looking to finance a new vehicle.
As of June, the average price of a new vehicle increased by 21 per cent year-over-year, to a record high of $66,288, according to the latest quarterly price index from AutoTrader.ca
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“There’s a lot of value unrecognized in the compact segment of the market,” said the Automobile Protection Association’s Iny. If you can make do with less space, he said deals can be found on compact cars and SUVs like the Toyota Corolla or the Hyundai Kona.
“That’s one segment where car makers weren’t able to increase prices quite as much as their other vehicles,” Iny said. “That type of vehicle is still available for under $30,000.”
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One place consumers could catch a break as supply recovers is at the dealership, according to Iny. Earlier in the pandemic, limited supply “evaporated” dealer discounts, he said. Instead, dealers started to pad prices with non-negotiable but unnecessary add-ons like green tire insurance and anti-theft packages.
“If the supply situation improves, you can once again go from dealer to dealer and drive a bargain,” Iny said. “The car will cost more, but there will be less dirty tricks.”