As 2023 approaches the midway point, it appears there are as many reasons for optimism about new-vehicle sales as there are for pessimism for what lies ahead.
The statement came minutes before the Bank of Canada raised the overnight lending rate by 25 basis points to 4.75 per cent, the highest it has been since 2001. J.D. Power is “cautiously optimistic” about the final seven months of the year, Karwel said. “Indicators are generally pretty good so far, and I think we’ll sell more vehicles this spring and indeed this year in Canada,” he said.
Demand for brands with a lot of body-on-frame product — typically large pickups and SUVs — is slowing because monthly payments and interest rates are rising, he said.The average transaction price of a new vehicle stood at $49,000 in April. May numbers aren’t yet available. DAC said that May is usually the strongest sales month of the year. From 2010 to 2019, May took the crown eight times.