Unsold Stock? A Look at the 2024 Canadian Car Market and Pricing

After a period of low inventory due to chip shortages, new car supplies began to rise in late 2023. This led to a jump in sales, with DesRosiers Automotive Consultants reporting an 11.8% increase compared to 2022 – the highest year-over-year increase since 1997.

So, what does this mean for unsold stock and car pricing in 2024?

Shifting Gears: From Scarcity to Selection

While the days of limited selection are likely over, finding a specific 2024 model might still require some searching. However, compared to the previous two years, car dealerships are no longer facing empty lots. This increased inventory gives car shoppers more options and potentially more negotiating power.

Pricing: Still Not Pre-Pandemic, But Relief in Sight

Unfortunately, don’t expect prices to plummet back to pre-pandemic levels just yet. The supply chain is still working its way back to normal, and there’s still pent-up demand from previous years. However, some softening in price might be on the horizon, particularly for popular models with high production volumes.

Navigating the 2024 Market

Here are some tips for navigating the 2024 car market in Canada:

• Do your research: Be prepared with the Manufacturer’s Suggested Retail Price (MSRP) for the car you’re interested in. This will help you determine a fair price during negotiations.
• Shop around: With more inventory available, visit multiple dealerships to compare prices and find the best deal.
• Consider a slightly used car: If you’re open to it, a slightly used 2023 model could offer significant savings compared to a new 2024.
• Be patient: If you’re not in a rush, waiting a few months could lead to further price adjustments as dealerships work to clear out remaining 2024 stock.

Approximate Pricing

It’s difficult to provide specific price points without knowing the car model and trim level you’re interested in. However, here’s a general range for some popular car segments in Canada:

• Compact Cars: $20,000 – $30,000
• Mid-Size Sedans: $25,000 – $40,000
• SUVs: $30,000 – $50,000
• Pick-up Trucks: $40,000 – $70,000

Remember, these are just starting points. The actual price you pay will depend on the factors mentioned above.