Changes in Canadians' buying habits have pushed up used-car transaction prices just like new-car prices but J.D. Power's Robert Karwel says there is still room for growth on the used side.
Like their American counterparts, Canadians have embraced light trucks, sport-utilities and crossovers, abandoning their fondness for compact and subcompact sedans and hatchbacks.
That has sent average transaction prices for new vehicles up sharply in the last few years, dragging used-vehicle prices up with them to record levels.
It is only logical, says Karwel, JDPA Canada's senior manager for its Power Information Network (PIN).
"If you sell more expensive and better-equipped cars as new cars, they'll be more expensive as used cars as well," he said in an interview with Automotive News Canada.
PIN data included in a recent presentation of new- and used-vehicle sales trends for this year revealed the average 2015 new-car transaction price was $30,200, up about $900 or 3.2 per cent from the previous year and roughly matching the jump between 2013 and 2014.