What are the Car Purchase Intentions of Canadians in 2022?

The market for new and used vehicles has been turned upside down since the start of the pandemic, but also with the crippling shortages currently affecting the automotive industry. Consumers are facing completely new realities and must think differently in regards to their purchase intentions.

A survey published by Satista in February has a lot to say about this. More than 2,000 Canadians aged 18-64 answered the following question: "Are you planning to buy a vehicle in the next 12 months?" Nearly one in two respondents (44%) said they did not intend to, while 12% were undecided. Next, 21% said they were considering buying a new vehicle, compared to 14% for those who were considering a used vehicle.

The rest of the survey respondents (9%) also intended to buy a vehicle in the next year, but they were still hesitating between new and used. Remember that the average price of new vehicles in the country exceeded $50,000 for the first time in December 2021, reaching $50,758. This is an increase of 12.7% over the previous year. In Quebec, we are talking about $45,975, an increase of 12.9%.

Used vehicle prices have skyrocketed, fuelled by the lack of new inventory. On average, Canadians are now paying $33,240, a 34.5% increase from the end of 2020 and an all-time high in the country. In Quebec, the jump is even greater, at 35.4%, but the average price remains below the national average at $29,434.

However, the survey does not take into account the recent increase in gas prices. If it is true that the demand for electric vehicles continues to grow, many motorists could decide to either change their vehicle for a more efficient model, or considerably reduce the use of the one they already have.