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Study: As Heat Rises, So Do Luxury Car PricesautoTRADER.ca's Value Finder helps Canadians outsmart used-car price fluctuations (July 17, 2012)
TORONTO, ONTARIO -- (Marketwire) -- 07/17/12 --
Attention: Automotive/Lifestyle Editors
With Canadians looking for ways to beat the heat this summer, the lure of driving a luxury car with the top down may have car-buyers making impulsive purchases that help their tan but hurt their pocketbook. According to new data findings from autoTRADER.ca, the average asking price of used cars rose in the second quarter of 2012. Lower new car purchases and lease agreements in past years now affecting the supply of cars entering the pre-owned marketplace are amongst the factors driving a rise in used car asking prices. This, coupled with price fluctuations based on region, age of car and model or make, may leave hasty Canadians eager to get behind the wheel of a convertible feeling a little burned.
autoTRADER.ca tracked the advertised price of more than 230,000 used vehicles on the autotrader.ca website and found that the average asking price had increased quarter-on-quarter by more than 1.2 per cent. The asking price for most luxury models rose higher than average, with popular cars such as the BMW 3 series rising 4.26 per cent - a jump of $848.40.
"In harnessing the autoTRADER.ca data, we can see that there are many factors that can affect the average residual values of used luxury vehicles, so we advise both buyers and sellers to do their research when entering the market to discover what the current going rate is for a particular type of model in their province," says Ian MacDonald, Director, Consumer Marketing, TRADER Corporation. "We want to make sure that Canadians are making informed decisions on the value of the cars for sale in Canada they may be considering buying, instead of being blind-sided by a spike in price that may normalize or even lower a few months from now. The best way to do this is to scour and aggregate the market quickly using tools such as our 'Value Finder'."
However complex the used car-buying landscape may seem, using tools such as the autoTRADER.ca Value Finder can help car-buyers to navigate pricing fluctuations and estimate a cars value - providing an easy to understand graph of age ranges, mileage and asking price spread of any model based on over 230,000 actual live used car listings. This can help the consumer make an informed decision on the value of their dream car. For example, whilst the average asking price rose, the Audi A4 asking price shrunk by 1.18 percent quarter-on-quarter ($239.78), while the Mercedes Benz SL500 pricing dropped 3.9% per cent, providing $1,319 in savings. Some marques saw little change, with the popular BMW Z4 roadster now going for just 0.1% less than it was 3 months ago. The findings also revealed that used car asking prices in Alberta were the highest amongst all Canadian provinces with an increase of 5.94 per cent, while the Quebec used car market saw a much more modest rise of just 0.14 per cent.
With luxury vehicles not top-of-mind for every car-buyer this summer season, the data also showed great deals to be had in other categories for the observant buyer, with used models such as the Ford Focus dropping 1.9 per cent. The results also showed that certain models fluctuate depending on region, such as the Ford F150 asking price growing 5.69 per cent in Alberta but just 3.5 per cent in Manitoba. The average asking prices of the Ford F150 for sale were also over 14% lower in Manitoba than in Alberta.
TRADER Corporation is a trusted Canadian leader in online media, managing automotive consumer marketplaces and publications. The company's primary online destinations include: autoTRADER.ca(TM), autoHEBDO.net(TM), Autos.ca and BuySell.com.
autoTRADER.ca offers The Most Cars in One Place(TM), with the largest inventory of new cars and inventory of used cars in Canada, available via our website and mobile applications. Visitors buy or sell cars, trucks or other motorized vehicles quickly, easily and conveniently. Buyers can search based on vehicle model, make, colour and geographic location to find the deal that is right for them. Autos.ca is the online destination for auto enthusiasts, featuring car news and car reviews from well-known automotive journalists. Follow autoTRADER.ca on Facebook at http://www.facebook.com/AutoTraderCanada or on Twitter at http://twitter.com/autotrader_ca.
DDB Public Relations
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