Toronto, Ontario – The average price of a used car in Canada is now $17,008, according to a new study by J.D. Power and Associates.
The typical Canadian used-vehicle buyer is 44 years old, with slightly more than one-third female buyers. The mileage on the average used vehicle when sold has dropped to 61,646 km, compared with 63,072 km in the first quarter of 2008, and the average vehicle age has increased marginally to 3.6 years.
In comparison with the first quarter of 2008, nearly 60 per cent of all used vehicle transactions in the first three months of 2009 were cash, which includes transactions for which buyers privately obtained financing. This marks a significant increase from 50.5 per cent during the same period in 2008. There was a corresponding decrease in loans taken out at the dealership.
While vehicle prices decreased, the total down payment climbed to almost 10.5 per cent of the customer’s equity in the vehicle, calculated by dividing the total down payment by the sum of total down payment and the amount financed. Even taking into consideration the 0.5 per cent decline in finance, the downward effect on the average finance monthly payment was minimal, and the finance term remained steady, at an average of 59 months.
The typical used vehicle sat on a dealer’s lot for an additional five days, compared with 2008. Slightly more than two of every 10 used-vehicle customers purchased an extended service contract, while supplemental insurance sales declined.