April 4, 2005
Canadians paid more for cars in 2004
Richmond Hill, Ontario – While the average MSRP went down about a half a point in 2004, transaction prices increased by 1.5 per cent, reports industry analyst Dennis DesRosiers.
The 1.5 per cent increase is the result of a -0.2 decrease in passenger car transaction prices offsetting a 1.9 per cent increase in trucks.
“There are a number of reasons that transaction prices are growing and MSRP prices are declining,” DesRosiers reports. “Consumers are buying a lot more entry level product but when they do, they buy the higher trim levels and load these vehicles up with lots of options. The cost of government is also escalating, with a never-ending stream of new taxes and fees targeting the vehicle buyer. The vehicle is the biggest tax target in Canada.”
DesRosiers reports that the average transaction price of a vehicle was $31,508 in 2004, with passenger car transactions at $25,007 and trucks $38,834, a number which includes about 35,000 heavy-duty trucks. Over the last five years, passenger car prices have increased about $500 per vehicle, while truck prices have increased by about $3,000 per vehicle.