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Is now the right time to buy a new or used vehicle?
Is now the right time to buy a vehicle, or is it wiser to wait until the auto market finishes cooling down?
After the pandemic, the market experienced new vehicle shortages and a surge in prices for used vehicles.
Today, it appears that prices for both new and used vehicles are stabilizing. Moving into 2024, prospective vehicle buyers could see a more favorable market, with increased inventory options to choose from and reduced prices for both new and used vehicles.
Whether you’re eyeing a brand-new model or looking to buy a pre-owned vehicle, I’ll explain the current state of Canada’s auto market and what could lie ahead.
How the pandemic affected the auto market
The pandemic severely disrupted the auto industry’s supply chains, leading to production slowdowns and inventory shortages, which was exacerbated by the ensuing chip shortage.
As we emerged from the pandemic, there was a notable improvement in these supply chains, setting the stage for a gradual recovery of the North American auto sector, including Canadian production.
In early 2023, we see a rise in Canadian vehicle sales, indicating signs of recovery. However, the market could still face resistance, with sales volumes expected to lag behind pre-pandemic levels
Cox Automotive Forecast: US Auto Sales Expected to Finish 2023 Up More Than 11% Year Over Year, as General Motors Retains Top Spot, Hyundai Motor Group Jumps Past Stellantis
ATLANTA, Dec. 27, 2023 – December new-vehicle sales, announced next week, are expected to show gains over last year’s product-constrained market. According to the Cox Automotive forecast released today, sales volume this month is expected to rise 6.2% over December 2022. The seasonally adjusted annual rate (SAAR), or sales pace, is expected to finish near 15.1 million in December. This SAAR is 1.6 million higher compared to last year’s pace. However, it reflects a slight decline from last month’s 15.3 million level and matches the lowest SAAR of the year, which was recorded in May.
According to Charlie Chesbrough, senior economist at Cox Automotive: “December is generally a strong month for new-vehicle sales as holiday shoppers look for year-end deals, and this year will be no exception. With supply much higher now and incentives higher as well, this December is expected to finish significantly better than last year. But high vehicle prices and high interest rates remain the industry’s Grinch right now, and that trend will continue into next year.”
2023: A Surprisingly Strong Sales Year
New-vehicle sales have been stronger and more consistent than expected throughout 2023. The new-vehicle market has been supported by growing deliveries, improving supply levels