November 28, 2007
Canadian used vehicle prices up almost five per cent in past four months, says J.D. Power
Toronto, Ontario – Used vehicle transaction prices in Canada have risen almost five per cent in the past four months, which, in combination with higher interest rates, has driven up both monthly payments and down payments, according to a survey by the Power Information Network, a division of J.D. Power and Associates.
The down payment as a per cent of the total vehicle price has remained steady at about 12 per cent, but the amount of the loan is usually substantially more than the total cost of the vehicle, says the report.
Lastly, about a third of the used transactions including a sixty-month loan have been financed through the captive finance source, although the captive penetration was considerably lower in October.