Anyone planning to buy a car should think twice about it. While prices have started falling since the August 2022 peak, they are still inflated as demand exceeds supply.
“We’re still in a seller’s market,” notes Benoit Béland of website AutoHebdo.net, which published its market report on Monday.
Of the 350,000 cars for sale on the site, 80% are used, a category where the average price in Quebec was $33,551 at the end of last year. At the end of 2021 it was $29,434 and at the end of 2020 it was $16,988.
“The good news is that inventories are expected to increase in 2023, which will push prices down,” the spokesman said.
Since last July, the average price of a used car in Quebec has fallen about 1% per month, which is small compared to the almost 100% increase since 2020.
Demand remains strong, says AutoHedbo.net. In January, the site saw a 27 percent increase in traffic and a 35 percent increase in requests for information from sellers.
Avoid buying this year
The average price for new cars has also risen sharply in Quebec. It was $55,660 at the end of 2022, compared to $45,975 at the end of 2021 and $33,630 at the end of 2020.
George Iny
Director of the APA
“The waiting time for new products is still counted in months and even years,” observes George Iny from the Association for the Protection of Motorists (APA).
Most notably, the ability of buyers to pay hasn’t been the same since the multiple rate hikes, especially for people who have had or will soon have to extend their mortgages.
His advice: If possible, don’t buy a car this year.
“Spring last year was a seller’s paradise and a buyer’s disaster,” notes the one who wants to help poor people and middle-class consumers first.
Beware of car debt
Stocks don’t grow that fast, he notes. Prices will remain high, he said.
Another problem, according to Guillaume Eckerl, “is that we now see people who bought a car during the price spike and resell it with debt”.
The founder of Peachy Car, a company that helps individuals sell used cars, gives the example of a car that paid for $15,000 and resold for $11,500.
“Debt follows the car, not the owner,” he warns, so make sure the loan is paid off when you buy a used car.
That’s what the register of personal and movable property rights is for, says the expert, but “not everyone knows that”.
AVERAGE PRICE OF A CAR IN QUEBEC *
used market
2020: $16,988
2021: $29,434
2022: $33,551
New market
2020: $33,630
2021: $45,975
2022: $55,660
*Each year on December 31st
Source: AutoHebdo.net
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