Should You Buy a Car Now or Wait Until Summer? A Canadian Perspective

Buying a car in Canada is a big financial decision, and with economic uncertainty, rising interest rates, fluctuating demand, and potential tariffs, timing your purchase can make a significant difference.

So, is it better to buy a vehicle now or wait until summer 2024? Let's break down key factors—tariffs, interest rates, seasonal trends, and supply issues—so you can make the best decision as a Canadian buyer.

1. Economic Factors Affecting Canadian Car Prices

🍁 Tariffs on Imported Vehicles Could Drive Up Prices

The Canadian auto market is heavily influenced by imported vehicles and parts, particularly from the U.S., Japan, and Europe. If new tariffs on Chinese-made EVs, Japanese models, or European luxury vehicles are introduced, manufacturers may pass these costs to consumers.

📌 Impact: If you’re considering an import-heavy brand (Toyota, Honda, BMW, Volkswagen, Hyundai, Kia, etc.), buying now could save you from potential price hikes.

🍁 Interest Rates Remain High—But Could Drop by Summer

The Bank of Canada has kept interest rates high to control inflation, making auto loans more expensive. However, experts predict rate cuts later in 2024, which could make financing cheaper.

📌 Impact: If you're financing your vehicle, waiting until summer could get you a lower interest rate, saving you money over time.

🍁 Exchange Rate & U.S. Market Influence

Many vehicles in Canada are priced based on the Canadian-to-U.S. exchange rate and supply from the U.S. market. A weak Canadian dollar makes imported vehicles pricier, which is something to watch in 2024.

📌 Impact: If the exchange rate worsens, expect higher prices on both new and used vehicles.

2. Seasonal Buying Trends in Canada

🚘 Spring (March – May): Strong Demand, Higher Prices

• Tax refund season means more Canadians are car shopping, pushing demand up.

• New model launches keep dealer incentives low since fresh inventory sells fast.

• Snowbirds and families planning summer road trips buy earlier, increasing competition.

📌 Impact: Buying now may mean paying full price with fewer incentives.

🚘 Summer (June – August): More Discounts, But Limited Selection

• End-of-model-year clearance sales begin in July-August, meaning discounts on 2024 models as dealers make space for 2025 inventory.

• Some buyers delay purchasing until fall or winter, reducing competition.

• Fourth of July & Labour Day sales (from U.S. dealers) can sometimes influence Canadian pricing.

📌 Impact: Waiting until late summer could mean better deals, but fewer choices on high-demand models.

3. Supply & Demand in the Canadian Market

New Car Inventory: Improving, But Prices Are Sticky

• The Canadian market has seen better vehicle supply than in 2022-2023, but dealers aren’t in a rush to lower prices.

• Many popular models still have waitlists, especially for hybrids and EVs.

📌 Impact: If you want a high-demand vehicle (Toyota RAV4 Hybrid, Ford Maverick, Honda CR-V, or electric models like Tesla, Hyundai Ioniq, etc.), waiting could mean delays and possible price increases.

Used Car Prices: Rising Again

• Canadian used car prices dropped in late 2023 but are now going back up due to demand and limited supply.

• Strong resale value means that some 2021-2023 models are selling for close to new-car prices.

📌 Impact: If you're looking for a used vehicle, buying now may be smarter before prices climb higher.

4. Regional Considerations: Where You Live Matters

🏔 Western Canada (B.C., Alberta, Saskatchewan):

• High demand for trucks and SUVs means prices stay firm year-round.

• EV adoption is increasing, but incentives vary by province.

🌆 Ontario & Quebec:

• Higher car insurance costs impact total ownership expenses.

• EV and hybrid incentives ($5,000 federal rebate + up to $7,000 provincial in Quebec) could make waiting for a new model worth it.

🍁 Atlantic Canada & Northern Regions:

• Fewer dealerships = less price competition, so timing deals is more important.

📌 Impact: If you’re buying in an area with high demand & limited dealers, waiting may not bring big discounts.

Final Verdict: Buy Now or Wait Until Summer?

✅ Buy Now If:

✔️ You’re considering an imported vehicle that could be affected by tariffs.
✔️ You’re buying used, as prices are trending upward.
✔️ You need a high-demand model (hybrid, EV, compact SUV) with potential wait times.
✔️ You prefer a wider selection and don’t want to risk losing out on your ideal car.

⏳ Wait Until Summer If:

✔️ You’re financing and want a lower interest rate.
✔️ You’re open to model-year-end discounts and don’t need a specific vehicle.
✔️ You want to negotiate better deals and aren’t in a rush.

Final Thoughts: The Best Move for Canadian Buyers

The Canadian auto market is shifting, but one thing is clear: if you need a car now, don’t wait too long. Tariffs, interest rates, and used car prices could all increase costs in the coming months.

However, if you're willing to wait, summer sales events and potential financing drops could offer savings—just be prepared for limited inventory on popular models.

🚗 Your best strategy? Research, compare deals, and be ready to act when the right offer comes along.

📢 Need Expert Guidance? Let’s Get You Behind the Wheel!

Still unsure whether now or later is the right time to buy? Our team is here to help! Contact one of our expert advisors today to schedule a consultation or test drive and get the best deal on your next vehicle.

📞 Call us today or 📅 Book an appointment online—we’ll help you make the smartest choice for your budget and lifestyle! 🚗💨