The average selling price for a used car is 34.5% higher than it was in 2020. The $33,240 amount is an all-time high.
The average new vehicle sold for a whopping $50,758 last year.
The numbers are staggering, frightening even. If you purchased a new or pre-owned vehicle in Canada last year, there’s a strong chance you paid a historically high amount, on average, for your new set of wheels.
The average pre-owned vehicle sold for $33,240 in 2021, or a 34.5% increase year-over-year from 2020. Meanwhile, new car buyers spent $50,758 on average. The latter amount represents the first time in history that new car prices have soared over the $50,000 mark and is a 12.7% increase over the 2020 numbers.
These eye-watering numbers are the result of many factors according to La Presse. Public transit fell out a favour for many Canadians meaning that acquiring a personal vehicle became necessary. Another is that limited traveling, be it for work or leisure, as well as eating out, has enabled many Canadians to save money. This extra pocket money enabled buyers to spend more than they likely would have prior to the pandemic.
The exacerbated demand for both new and used vehicles is also the direct result of the global parts shortage, including microchips, which drastically lowered inventories. Based on many experts, the situation will drag on through 2022 and hopefully improve in 2023.
