Used inventory levels continued to tighten in March with Vehicle Availability Index readings dropping 3.2% MoM and now down 8% YoY. Surprisingly the tightening inventory hasn’t impacted prices yet as average listing prices dropped 1.4% MoM and are now down 3.1% YoY while still being up over 50% from pre-COVID levels. Days-on-market for used vehicles headed down in March, suggesting that consumers are purchasing more longer sitting models as inventory levels tighten.
Counter to the used market, new vehicles continued to see a resurgence in inventory with levels rising 7.4% MoM and now up over 38% YoY. Frustratingly this influx in new inventory hasn’t been able to lower prices yet with the average listing price rising 0.4% MoM and up 7.6% YoY. The rising inventory levels has helped to bring down days-on-market with levels dropping 8.9% MoM while being up 31% YoY.
To learn more about the trends impacting vehicle inventory, download the March 2023 edition of the CarGurus Canada Vehicle Availability Index & Insights Report.