Courtesy of J.D. Power January Automotive Market Metrics (Released Feb 2, 2022).
J.D. Power (Canada) released its January Automotive Market Metrics this week. The data shows that in January 2022, the number of days to turn used vehicles climbed almost ten days – moving from just below 70 days to almost 80 days. This shift means that the number of days to turn used vehicles is almost identical to January 2021. While the days to turn new vehicles stayed steady at just over 30 days (no change from the previous month), this is a significant decrease compared to January 2021, when it took just over 60 days to turn new vehicles. This data is not surprising considering the inventory shortages being felt across the industry.
Citing data from the JDPA PIN Incentive Spending Report (ISR), J.D. Power’s Automotive Market Metrics showed new vehicle prices remained stable at $47,000 which is down slightly compared to last year’s average price of almost $48,000 (January 2021). Transaction prices continued a slow climb, hitting almost $44,000 this month.
J.D. Power also reported that 56% of consumers had a new-vehicle loan term that was 84 months or more in January 2022, identical to last month. While trade-in percent was relatively stable year-over-year at 45%, the percentage of negative equity vehicles at trade-in (new) had dropped significantly compared to last year; 25% in January 2022 which is down 10% compared to January 2021.
The average monthly payment per customer for a new loan remained stable at just over $740 in January 2022. The average monthly payment per customer for a new lease in January was approximately $640, not much of a change from last month.
In terms of the percentage of total transactions over the past 12 months, the majority of customers purchased their vehicle with a loan – 55% using a loan to purchase a new vehicle and 51% to purchase a used vehicle. Approximately 17% of customers paid cash for new vehicles and 47% paid cash for used vehicles. Twenty-eight percent of customers leased a new vehicle while only two percent leased a used vehicle.
