After almost 20 years of regular substantial increases, the average retail price of new cars has been pretty flat for the last five or six years.
The only significant drop in the average prices happened in 1991, when the federal government's move to a built-in GST actually lowered prices on new vehicles.
According to Statistics Canada figures from 1982 to 2004 provided by Dennis DesRosiers of DesRosiers Automotive Consultants in Richmond Hill, the average transaction price (not the MSRP) for a new car in Canada in 2004 was $25,007. That's actually down $49 from the year before, and represents only a 2.1 percent increase from 2000's average cost of $24,483. In 1982, by the way, the average car price was $9,864.
The situation with trucks is not so straightforward, DesRosiers points out, since StatsCan includes about 35,000 heavy-duty trucks in a ''commercial vehicles'' file. DesRosiers estimates that this will put the average truck price ''several thousand dollars" above what the average price would be for what the auto industry calls the ''light truck segment,'' including pickups, SUVs and minivans.
With those commercial vehicles added in, StatsCan gives light trucks an average price of $38,569, which is the result on on-going annual increases in the last couple of years.
Unfortunately, that also makes it impossible to come up with an accurate overall transaction price for cars and light trucks. StatsCan's inflated average is $31,508.
DesRosiers says there are a number of reasons why transaction prices are increasing and MSRPs are declining. ''Consumers are buying a lot more entry level products,'' he says, ''but when they do they buy the higher trim levels and load these vehicles up with lots of options.''
On top of that, DesRosiers notes, ''the cost of government is also escalating, with a never-ending stream of new taxes and fees targeting the vehicle buyer.''
Overall, DesRosiers points out, ''the vehicle is the biggest tax target in Canada, and one of these days our governments are going to have to realize that if they want the million direct jobs tied to the manufacturing, distribution, sales and repairs of vehicles, then they are going to have to tax the vehicle owner less.''
With truck prices up about $3,000 in the last few years, DesRosiers points out, it's maybe not surprising that the truck penetration in Canada has not budged much from the 44 percent mark in the last six or seven years.
Average Prices of Vehicles in Canada
Passenger Cars
1982 : $9,864
1983 : $10,721
1984 : $11,469
1985 : $12,054
1986 : $13,393
1987 : $14,786
1988 : $15,819
1989 : $16,740
1990 : $17,235
1991 : $16,152
1992 : $17,157
1993 : $17,967
1994 : $18,944
1995 : $20,714
1996 : $21,961
1997 : $22,797
1998 : $23,021
1999 : $23,581
2000 : $24,483
2001 : $24,370
2002 : $24,812
2003 : $25,056
2004 : $25,007
The only significant drop in the average prices happened in 1991, when the federal government's move to a built-in GST actually lowered prices on new vehicles.
According to Statistics Canada figures from 1982 to 2004 provided by Dennis DesRosiers of DesRosiers Automotive Consultants in Richmond Hill, the average transaction price (not the MSRP) for a new car in Canada in 2004 was $25,007. That's actually down $49 from the year before, and represents only a 2.1 percent increase from 2000's average cost of $24,483. In 1982, by the way, the average car price was $9,864.
The situation with trucks is not so straightforward, DesRosiers points out, since StatsCan includes about 35,000 heavy-duty trucks in a ''commercial vehicles'' file. DesRosiers estimates that this will put the average truck price ''several thousand dollars" above what the average price would be for what the auto industry calls the ''light truck segment,'' including pickups, SUVs and minivans.
With those commercial vehicles added in, StatsCan gives light trucks an average price of $38,569, which is the result on on-going annual increases in the last couple of years.
Unfortunately, that also makes it impossible to come up with an accurate overall transaction price for cars and light trucks. StatsCan's inflated average is $31,508.
DesRosiers says there are a number of reasons why transaction prices are increasing and MSRPs are declining. ''Consumers are buying a lot more entry level products,'' he says, ''but when they do they buy the higher trim levels and load these vehicles up with lots of options.''
On top of that, DesRosiers notes, ''the cost of government is also escalating, with a never-ending stream of new taxes and fees targeting the vehicle buyer.''
Overall, DesRosiers points out, ''the vehicle is the biggest tax target in Canada, and one of these days our governments are going to have to realize that if they want the million direct jobs tied to the manufacturing, distribution, sales and repairs of vehicles, then they are going to have to tax the vehicle owner less.''
With truck prices up about $3,000 in the last few years, DesRosiers points out, it's maybe not surprising that the truck penetration in Canada has not budged much from the 44 percent mark in the last six or seven years.
Average Prices of Vehicles in Canada
Passenger Cars
1982 : $9,864
1983 : $10,721
1984 : $11,469
1985 : $12,054
1986 : $13,393
1987 : $14,786
1988 : $15,819
1989 : $16,740
1990 : $17,235
1991 : $16,152
1992 : $17,157
1993 : $17,967
1994 : $18,944
1995 : $20,714
1996 : $21,961
1997 : $22,797
1998 : $23,021
1999 : $23,581
2000 : $24,483
2001 : $24,370
2002 : $24,812
2003 : $25,056
2004 : $25,007