Toronto, Ontario – Canadian buyers are keeping their vehicles longer and delaying new-vehicle purchases when compared to a year ago, according to a new report by J.D. Power and Associates. The report found that the percentage of both new- and used-vehicle transactions with trade-ins at new-vehicle dealerships are falling when compared to last year’s transactions.
As well, the average age of traded vehicles is rising and their odometer readings are also higher, both on new and used transactions. The findings are supported by the recent softening in retail sales overall.
The percentage of trades coming in on new-vehicle purchases for which the trade is “upside down” (the amount still owing on the vehicle is more than its cash value) has risen from a year ago. This finding follows the recent substantial deterioration in the values of most SUVs and pickups due to the price of gasoline. The situation is illustrated further by the fact that some dealerships have publicly announced that they will not accept trades of any large pickups or SUVs, the report said.
The report also found that the percentage of same-franchised used-vehicle sales has eased slightly, suggesting that franchised new-vehicle dealerships are now selling a wider range of products than they did a year ago.