How much new vehicle prices soared

Summitric

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November 30, 2023 by Adam Malik

How much new vehicle prices soared​

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Prices paid for new vehicles in Canada have continued to jump so far in 2023.

Data from DesRosiers Automotive Consultants show that the average transaction price for a new light truck or passenger car is $52,900 — up nearly 6 per cent from the end of 2022 when the average transaction price was $49,9000.

Driving that jump is the increase to light trucks at an estimated transaction price of $54,000 on average by the end of the third quarter this year. Passenger cars came in at $46,000. Both are up from $51,700 and $41,800, respectively, at the end of 2022.

Because light trucks make up about 86 per cent of vehicle sales, the overall average transaction price skews higher.

These figures once again represent the highest transaction prices ever in Canada.

“New light vehicle transactions have been getting more expensive as a result of semi-conductor shortages, the growing share of EVs, a shift to light trucks, and broader inflationary pressures,” said Andrew King, managing partner at DesRosiers.

He added that there has been a $10,000 jump — almost 20 per cent — in the average transaction price for light vehicles over the last four years.

Guido Vildozo, a senior manager who forecasts light vehicle sales in the Americas, noted at Canadian Black Book’s Talk Auto event earlier this month that even while dealer inventories are increasing, customers typically only have higher-end, more expensive options from which to choose. He called it the “wrong” type of inventory that won’t help people who want to buy a new vehicle as they can’t afford these elevated prices. And that’s on top of economic pressures.

And prices could go higher. Ford said its new deal with the United Auto Workers union could raise costs USD$8.8 billion, which works out to about $900 per vehicle, by 2028.

“While even greater increases in used vehicle prices have helped many consumers with the equity of their trade-in, the increase in new vehicle prices combined with high interest rates is obviously creating a challenging market environment that we will be watching closely in 2024,” DesRosiers’ announcement about the stats said.
 

catalac

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It’s been nasty my last few trucks:
2020 f350 platinum $88,000
2021 f350 platinum $92,000
2022 f350 platinum $98,000
2022 f350 limited $112,000
2023 f350 lariat $114,000

22 to 23 I went down down 3 levels and cost me $2000 more, if I had gone apples to apples and got a 23 limited it was $127,000ish and material’s quality is way down, ford making these things cheaper every year, seats in 23 are horrible.

Usa flipping doesn’t seem to be working anymore for me.
 

ABMax24

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The used market is softening, talking with the local dealer they're having a much harder time selling vehicles wholesale to the states and not getting the same money for them anymore.

The flip side is interest rates hurt the dealers too, if they have to borrow money to maintain vehicle inventory there is significant incentive to sell vehicles fast at today's interest rates.

Another factor is lenders aren't giving out auto loans like they used to, same dealer says they are sitting at 30% rejection rate right now for customers seeking new auto loans.
 

pfi572

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It’s been nasty my last few trucks:
2020 f350 platinum $88,000
2021 f350 platinum $92,000
2022 f350 platinum $98,000
2022 f350 limited $112,000
2023 f350 lariat $114,000

22 to 23 I went down down 3 levels and cost me $2000 more, if I had gone apples to apples and got a 23 limited it was $127,000ish and material’s quality is way down, ford making these things cheaper every year, seats in 23 are horrible.

Usa flipping doesn’t seem to be working anymore for me.
Everything that goes up must come down at some point when it comes to toys and vehicles.
I have heard the US market is drying up .
 

Caper11

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Everything that goes up must come down at some point when it comes to toys and vehicles.
I have heard the US market is drying up .

I have also noticed a change in the pricing of vehicles this month. The market is looking like it’s drying up.


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sledneck__11

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103 plus taxes and fees at 8.3% for ford financing and they were suprised i wasnt interested at all, seen a local dealer had a few suvs we were kinda interested in not interested anymore there still
Playing the we cant keep
Up to orders, but on another not buddy has been waiting 20 months for his toyota highlander to show up
 

MP Kid

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Buddy waited a year for the Bronco his wife ordered from a dealer she does promotional work for in Saskatchewan.
Once it landed, the dealer added $15G to the price….
Buddy's wife was not happy…
They told the dealer to keep it and found a Toyota 4runner on a lot. Not sure what he paid, but he’s happy with the choice and the extra coin in his pocket.
 

catrutt

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Son in law just bought a ford f 150 power boost hybird $10g off and 2.9%
 
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