Canadian Used Car Prices Strengthen: Scotiabank Global Auto Report

TORONTO, Oct. 10, 2013 /CNW/ - Global car sales gained momentum during the summer with a 6.5% year-over-year (y/y) increase in July and August, up from a 4% advance in the first half of the year, according to the latest Scotiabank Global Auto Report.

"The improvement reflects double-digit advances in the U.S. and Asia, especially China - the world's largest and fastest-growing auto market," said Carlos Gomes, Scotiabank's Senior Economist and Auto Industry Specialist. "In Canada, car and light truck sales set a third consecutive monthly record in September. In addition, used car prices picked up in early October alongside the recent expiry of enhanced incentives on several new vehicles, and will remain strong in coming months due to ongoing tight supplies of pre-owned models"

Highlights in the report include:

• Incentives on new cars and light trucks surged during the summer in Canada, reducing new vehicle prices by 5% since the opening months of 2013. This represents the fifth consecutive year that automakers have boosted incentives on new vehicles to spur sales.
• Similar to Canada, a shortage of used cars and light trucks is also being felt in the U.S. As a result, the number of pre-owned vehicles imported into Canada from the U.S. has dropped sharply.
• However, after several years of fewer vehicles coming off-lease in both countries, some loosening will begin in 2014, as the new vehicle sales recovery finally increases the supply of pre-owned models for the first time since 2009.

Read the full Scotiabank Global Auto Report at http://www.scotiabank.com/ca/en/0,,3112,00.html.

Scotiabank provides clients with in-depth research into the factors shaping the outlook for Canada and the global economy, including macroeconomic developments, currency and capital market trends, commodity and industry performance, as well as monetary, fiscal and public policy issues.

Scotiabank is a leading multinational financial services provider and Canada's most international bank. With more than 83,000 employees, Scotiabank and its affiliates serve some 21 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. In December 2012, Scotiabank became the first Canadian bank to be named Global Bank of the Year and Bank of the Year in the Americas by The Banker magazine, a Financial Times publication. With assets of $743 billion (as at July 31, 2013), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

For high-resolution video clips visit http://media.scotiabank.com/cdaen/multimedia/mc-videos.html. For more Scotiabank economic publications visit http://www.scotiabank.com/ca/en/0,,3112,00.html.

SOURCE: Scotiabank - Economic Reports

Carlos Gomes, Scotiabank Economics, [phone], [email protected]; or
Devinder Lamsar, Scotiabank Media Communications, [phone], [email protected].