Used car prices on the rise, heralding broader recovery
TORONTO — Used car prices are on the rise, heralding a broader recovery in demand for vehicles in both Canada and the United States, according to a new report by Scotia Economics.
The report, released Friday, found that used car prices bottomed in both Canada and the United States in early 2009.
Normally, a rebound in demand for used cars precedes improved demand for new cars by three to six months.
“(This reinforces) our view that the outlook for new vehicles sales has improved significantly and that a sustained cyclical recovery is underway,” wrote Carlos Gomes, author of the bank’s monthly Global Auto Report.
Gomes found that used car prices in the U.S. hit a bottom in November 2008, when they were 12.2 per cent lower than a year earlier.