Ottawa, Ontario — J.D. Power has released its Automotive Market Metrics for July 2024, which shows a strong used vehicle market—a good sign for the collision repair industry, according to automotive market analyst Sam Fiorani.
According to the monthly report, new vehicle prices compared with customer-facing prices have remained relatively stable this year, with new vehicle transaction prices sitting between $44,000 and $46,000 in July 2024, compared to vehicle prices between $48,000 and $50,000.
“The price of new vehicles is rising so much that it’s making used vehicles much more important in this marketplace,” explained Sam Fiorani, vice president of AutoForecast Solutions.
“[Current vehicle pricing] leaves a lot of buyers out of the marketplace, making it much more important [to them] to maintain their older vehicles. Collision repair is key to ensuring they’re safe and usable for years.”
In the last 12 months, 50 percent of new vehicle transactions have been paid in loans; 25 percent have been leased and 25 percent were paid for in cash.
For used vehicle sales in the last 12 months, 53 percent were paid in loans; 45 percent were paid for in cash and two percent were leased.
The report also details the days-to-turn for new vehicles, versus used vehicles. New vehicles take between 50 days and 60 days to turn, while used vehicles are not too far behind, taking between 70 days and 80 days to turn.
J.D. Power also presented the percentage of negative equity vehicles at trade-in. Trade-ins have sat at around 20 percent since June 2024, while negative equity on those trade-ins increased in July to between 40 percent to 45 percent.
The percentage of negative equity vehicles has stayed at around 20 percent since July 2023, while trade-ins have risen to almost 45 percent, a jump of almost five percent since June 2024.
Click here to see all the insights from J.D. Power’s Automotive Market Metrics July 2024 report.
