The month of March caused unprecedented market changes across the globe in every industry, the longer-term impact of which has yet to be truly recognized. The Price Index identifies trends from the previous month related to the price of new and used vehicles across the country. Comprehensive data is obtained from over 400,000 listings on Canada’s largest automotive marketplace.
Pricing figures collected from February 26 to March 25, 2020 suggests a moderate decrease in new and used average vehicle pricing month-over-month. This is an early indicator that Canadian car prices are experiencing modest declines in the short term. While past data has indicated that used vehicle prices generally see a lift in Springtime, this decrease could signify the early impact of COVID-19 to traditional market patterns.
As the impact of the COVID-19 pandemic continues to be felt in industries across the world, it is still too early to tell what the true affect will be on Canadian vehicle prices for the foreseeable future. We will continue to closely monitor the Canadian automotive pricing landscape as it evolves and share our findings in next month’s Price Index.
Limited fluctuation in Canadian vehicle pricing at market level
The average price of a new vehicle in Canada in March 2020 was $40,055, a marginal increase of 0.3 per cent compared to prices one year ago. When compared to the price of a new vehicle last month, this accounts for a 0.2 per cent decline. Meanwhile, the average used vehicle price of $18,980 accounts for a 0.4per cent increase year-over-year and a 0.1 per cent decline month-over-month. There are no indications of substantial pricing changes at a high level, although this is expected to change as current market conditions evolve.
New trucks and sedans see first month-over-month decrease since September
When we drill down by body type, our data indicates that average prices for new Trucks and Sedans are down month-over-month by 1.2 and 0.3 per cent respectively. Average new SUV prices experienced a 2.7 per cent year-over-year decline settling at $37,677, continuing the downward trend identified in December. Used vehicles have also experienced a slight dip, with both SUVs and Trucks by 0.9 per cent month-over-month. Prices for used Sedans however have remained flat month-over-month and continue to remain the most economical body type on the market.
North American vehicles see a decrease following a period of steady growth
We continue to observe a decline in average new European vehicle prices, which are down 0.4 per cent month-over-month and 4.4 per cent year-over-year. New Domestic vehicles also experienced a 0.8 per cent drop month-over-month, putting an end to the growth we’ve seen over the past several months. The new Asian vehicle market remained flat month-over-month. From a used vehicle perspective, Asian manufactured vehicle prices remained flat in March versus February at $16,995, with the once strong Domestic vehicle market experiencing a 2.9 percent decline in prices month-over-month and 4.3 percent decline year-over-year. Conversely, European manufactured vehicles experienced a 2.2 per cent price increase versus February and are now up 2.1 per cent year-over-year.
Atlantic Canada used vehicle pricing sees largest monthly increase
New vehicle prices are seeing moderate declines across Canada. Interestingly, the largest year-over-year gain was experienced in Atlantic Canada, up 4.5 per cent, while the largest month-over-month gain occurred in Québec, up 1.0 per cent, continuing the month-over-month growth trend identified last month. In contrast, as it relates to month-over-month pricing, Atlantic Canada experienced the largest decline (1.5%) settling at $34,828. Manitoba and Saskatchewan experienced the largest year-over-year decline finishing the month at $43,580, accounting for a 2.4 per cent drop.
In Atlantic Canada, used vehicles experienced the largest month-over-month increase of 4.9 per cent and a year-over-year increase of 5.3 per cent. We are also seeing an increase in the Alberta used vehicle market, which is up 1.8 percent month-over-month. The markets in Ontario and Manitoba and Saskatchewan are experiencing the inverse, down 1.1 and 1.0 per cent respectively compared to February 2020.
These were the Top 5 Most Searched vehicles during March of 2020 on autoTRADER.ca’s marketplace:
1. Ford Mustang
Median price new: $47,165
Median price used: $26,995
2. Ford F-150
Median price new: $55,194
Median price used: $29,788
3. BMW 3-Series
Median price new: $59,450
Median price used: $18,995
4. Mercedes-Benz C-Class
Median price new: $62,790
Median price used: $28,880
5. Honda Civic
Median price new: $31,891
Median price used: $9,895
6. Porsche 911
Median price new: $166,850
Median price used: $112,945
7. BMW M
Median price new: $112,604
Median price used: $54,555
8. Jeep Wrangler
Median price new: $52,525
Median price used: $30,950
9. Toyota RAV4
Median price new: $35,711
Median price used: $23,287
10. Mercedes-Benz E-Class
Median price new: $87,347
Median price used: $28,995
Released monthly, the autoTRADER.ca Price Index provides a snapshot of the Canadian automotive market to bring a level of transparency to the vehicle buying process. Analyzing pricing data from autoTRADER.ca’s marketplace of over 400,000 listings, tracking new and used vehicle pricing allows our data experts to identify how prices are trending nationally and provincially, along with the most searched models by consumers.
To see previous Price Index reports, click here.