autoTRADER.ca continues to closely monitor Canadian car pricing trends month-over-month and year-over-year, leveraging robust data from over 450,000 new and used vehicle listings on the marketplace. Between September 26 and October 25, 2020, national median new and used vehicle listing prices recorded another period of month-over-month increases.
October also saw a year-over-year increase in median used car prices for the first time since April. A sustained groundswell in consumer demand contrasted with a shortage of vehicle availability in the market is showing signs of price inflation. We expect the market uncertainty caused by the ongoing global pandemic to continue playing a notable role in the evolution of economic trends and, in turn, influence the trajectory of Canadian vehicle prices throughout the last quarter of 2020. We will continue to monitor pricing behaviour and report our findings in next month’s Price Index.
National median vehicle prices recorded a month-over-month increase for the second consecutive month
The median retail price of a new vehicle across Canada settled October at $38,494, representing an increase of 2.9 per cent month-over-month and a decrease of 3.4 per cent year-over-year. Meanwhile, the median price of a used vehicle stands at $19,495, accounting for an increase of 5.7 per cent month-over-month and 3.7 per cent year-over-year, marking the first year-over-year price increase since May 2020. These indicators could point to the market slowly moving towards normalcy.
Vehicle prices increase across body types, trucks witness the strongest year-over-year increase of 2020
When examining pricing behaviour by body type, the data revealed that new trucks experienced the highest year-over-year price increase this year, recording a double-digit increase of 10.3 per cent, settling at $59,815. This represents a 2.9 per cent increase month-over-month. This increase in prices could be linked to a shortage of new trucks caused by factory closures earlier this year. The median new sedan price closed the month at $29,281, an increase of 2.1 per cent month-over-month and 7.0 per cent year-over-year. As for new SUVs, they recorded price increases both month-over-month and year-over-year at 2.0 and 2.8 per cent respectively, settling at $38,148.
Turning to used vehicles, similar to their new counterparts, used truck pricing also recorded its highest year-over-year increase in 2020 at 16.2 per cent, ($34,848), and a month-over-month increase of 8.9 per cent. This increase can be attributed to the continued supply and demand mismatch experienced in the truck segment. Used sedan prices experienced an increase of 6.6 per cent both month-over-month and year-over-year. Used SUVs closed the month at $22,500 indicating an increase of 2.3 per cent month-over-month and 0.5 per cent year-over-year.
North American used vehicle prices experience growth
When evaluating prices by manufacturer of origin, vehicles experienced both month-over-month and year-over-year increases across the board. North American new vehicles experienced the highest month-over-month increase at 4.5 per cent ($52,468), followed by vehicles manufactured in Asia up 1.6 per cent, ($32,624). Finally, European vehicles recorded an increase of 1.3 per cent, finishing the month at $53,092. Used North American vehicles experienced a 5.0 per cent increase month-over-month at $20,995. Asian used vehicles reported a similar increase at 5.2 per cent month-over-month, at $17,350 while European used vehicles experienced the highest month-over-month increase of 8.3 per cent, ($26,971).
European and North American factories experienced the brunt of the impact of COVID-19 in terms of supply chain and manufacturing capabilities, which could have contributed to the slightly more noticeable increase in median new vehicle prices compared to Asian manufactured vehicles.
New and used vehicle prices rise in every region across the country
Analyzing Canadian car pricing trends by region, both new and used vehicle prices experienced increases month-over-month in October, across the country. Manitoba and Saskatchewan recorded the highest month-over-month increase for new vehicles at 6.5 per cent, followed by Alberta at 4.1 per cent and Ontario at 3.9 per cent. Alberta remains the region where consumers can expect to see the highest average price for new vehicles at $45,985. This could also be related to the above-average popularity of trucks in the province combined with the countrywide increase in truck prices this month.
For used vehicles, month-over-month prices have increased across the country, with British Columbia, Alberta and Ontario leading the curve at 12.9, 9.1 and 7.6 per cent respectively. Atlantic Canada and Manitoba & Saskatchewan experienced the lowest month-over-month increase for used vehicles at 1.8 and 2.6 per cent. Québec remains the region with the lowest average price for used vehicles at $16,495.
These were the Top 5 Most Searched vehicles during October of 2020 on autoTRADER.ca’s marketplace:
1. Ford F-150 (#1)
Median price new: $53,469
Median price used: $33,995
2. Ford Mustang (#2)
Median price new: $44,565
Median price used: $26,490
3. BMW 3-Series (#3)
Median price new: $57,710
Median price used: $22,980
4. Mercedes-Benz C-Class (#4)
Median price new: $59,965
Median price used: $31,899
5. Porsche 911 (#6)
Median price new: $163,675
Median price used: $119,973
6. Honda Civic (#5)
Median price new: $31,945
Median price used: $9,995
7. BMW M (#7)
Median price new: $104,712
Median price used: $64,888
8. Chevrolet Corvette (#8)
Median price new: $101,536
Median price used: $59,995
9. Mercedes-Benz E-Class (#11)
Median price new: $86,001
Median price used: $33,880
10. Toyota RAV4 (9)
Median price new: $32,877
Median price used: $22,998
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 450,000 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.