July 16, 2007
Trade-in vehicles are getting older, says J.D. Power
Toronto, Ontario – A report from J.D. Power and Associates’ Power Information Network says that the percentage of new- and used-vehicle transactions involving a trade-in in Canada has dropped, and the average age of traded vehicles is getting older.
In June 2006, 32.0 per cent of new-vehicle purchases involved a trade-in, which dropped to 28.2 per cent in June 2007; in June 2006, 26.5 per cent of used-vehicle purchases had a traded vehicle, but only 25.5 per cent involved a trade-in in June 2007.
The average age of trade-ins on new-car purchases has increased to 6.6 years in June 2007, compared to 6.6 per cent in June 2006. However, trade-ins on used car purchases were slightly newer, with an average 7.8 years in 2006, and 7.6 years in 2007. The odometers also reflected the change in age: the mileage on new-vehicle trade-ins increased from an average of 116,000 km in 2006 to 118,000 km in 2007, while vehicles traded in for used-vehicle purchases dropped more than 6,000 km, to 134,000 km.
The report also found that the proportion of used vehicles sold at new-vehicle dealerships of the same franchise has edged up, and is now approaching three-quarters of all vehicle sales.