Sunday, November 14, 2021

Canada: Here's why car prices are skyrocketing

CTV News in Canada shows that ongoing supply chain issues have led to shortages in new and used cars, driving up vehicle prices with no relief in sight.

A so-called "used car", a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through a variety of outlets, including franchise and independent car dealers, rental car companies, buy here pay here dealerships, leasing offices, auctions, and private party sales. Some car retailers offer "no-haggle prices," "certified" used cars, and extended service plans or warranties.

In Ontario, Canada, new and used vehicle sales are regulated by the Ontario Motor Vehicle Industry Council (OMVIC). In Alberta, Canada, new and used vehicle sales are regulated by the Alberta Motor Vehicle Industry Council (AMVIC).

A so-called luxury car is a car that provides increased levels of comfort, equipment, amenities, quality, performance, and status compared to regular cars for an increased price. The term is subjective and reflects both the qualities of the car and the brand image of its manufacturer. Luxury brands rank above premium brands, though there is no fixed demarcation between the two.

Traditionally, most luxury cars were large vehicles, though smaller sports-oriented models were always produced. "Compact" luxury vehicles such as hatchbacks, and off-road capable sport utility vehicles, are relatively modern trends.


  1. Jeeps are sleek yet rugged, sophisticated and bold. It’s a certain kind of people that are attracted to Jeeps, and for good reason! If you’re one of them, do you know which model is best for you? Get a quote from

    1. Thanks for reading the blog post about car prices. Jeeps are certainly interesting cool cars.

      In Canada, car prices rose certainly a lot in a year.

      Pent-up demand pushed prices to record highs in Canada, raising 34.5 per cent for used cars and 12.7 per cent for new cars between December 2020 and December 2021, according to the Price Index for December, 2021.

      Car prices go up in 2021 in Canada.

      On the new vehicle side, the average price in Canada exceeded $50,000 for the first time in Dec. 2021 to reach $50,758, an increase of 12.7 per cent compared to Dec. 2020. In Quebec, the increase was slightly higher at 12.9 per cent, to $45,975.

      Car prices will go up 2022. BMW, Toyota, Mercedes-Benz and Audi have announced a price increase across their model line-up from April 1, 2022. All carmakers have cited rising input costs as the major reason behind the hike. In January this year, several car brands, including luxury ones, had increased the prices citing the same reason.

      Blame increasing car prices on a perfect storm of supply chain woes, a shortage of computer chips and a rise in demand for private vehicles because of COVID-19. It's not just your grocery bill that's going up, indeed.