More Canadian shoppers consider used cars, largely for supply issues
While Canadian car shoppers say they’ll hold steady on their decisions around new-versus-used and budgeting regardless of where the economy goes, recent research from AutoTrader.ca also shows they were more willing to consider pre-owned this year.
Pushed by microchip shortage-driven new-car supply challenges, 36% of vehicle intenders this year considered buying a used car instead of new, according to AutoTrader data.
That’s up 10% year-over-year.
“With the average price of used vehicles softening, and inventory rising on AutoTrader, used vehicles continue to be an appealing option for car shoppers,” AutoTrader said.
As of early October, 24% say they plan to buy a vehicle in the next six months, which is up from 18% in March and 18% in October 2021, AutoTrader found.
If the economy improves, 62% plan to buy new and 38% intend on going used. If it declines, 60% plan to buy new and 40% intend on buying pre-owned.
Should the economy remain steady, 58% plan on new and 42% will go used.
Used-car buyers are budgeting $26,000 on average regardless of whether the economy improves, remains the same or declines, AutoTrader found.
It’s much of the same for new-car intenders.
The average budget in an improved and declining economy is $49,000; should the economy remain the same, the budget goes to $48,000.