Affordability continues to challenge Canada’s auto finance segment

Even as inventory levels recover, affordability is still the biggest challenge facing dealers and auto finance companies in Canada, industry participants and analysts told Auto Remarketing Canada.

“I would say while it is not unique to Canada, the biggest challenge (auto finance companies are facing) is simply the affordability factor,” said Mike Buckingham, managing director, auto finance at J.D. Power.

Vehicle prices are up 30% since the third quarter of 2020 and interest rates have ...