Dealers may be interested to note that J.D. Power recently released its Canada Automotive Market Metrics for September 2023, revealing that loans represented 53 per cent of total transactions over the past 12 months for new vehicles. That figure increases to 55 per cent for used vehicles.
The report also shows that cash represented 23 per cent of total transactions during the same period for new vehicles, and leases represented 22 per cent. For used vehicles, those figures rise to 43 per cent for cash and drop to 2 per cent for leases.
However, when considering the monthly average payment per customer, new leases dipped slightly in September from the previous month (hovering around $800), but were higher than a year earlier. New loans were also slightly lower than the prior month (August), sitting below or around $880, which is also significantly higher than in September 2022.
As for the per cent of the new vehicle loan term for 84 months and greater, September 2023 sits at 59 per cent — slightly more than in August and above the September 2022 figure. On days to turn, new vehicles hovered around 35 days last month, while used vehicles hovered between 75 and 80 days (closer to the latter). Both are above their year-over-year figures.
The new vehicle price versus the customer facing price, when considering data from the JDPA PIN Incentive Spending Report (ISR), September’s new vehicle price was slightly more than $50,000 and the transaction price around $47,000. The percent of negative equity for new vehicles was between 15-17.5 per cent (above August 2023). And trade-in was slightly more than 42.5 per cent in September (similar to the prior month).
