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Will car prices come down in 2024? Industry experts share their outlook – Global News

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As Canadians enter 2024, those hoping to pick up a new or used car may see similar prices to what was seen in 2023, with automotive experts saying not to expect the cost for a vehicle to return to pre-pandemic levels anytime soon.

During the COVID-19 pandemic, inventory became a big factor due to supply chain issues impacting semiconductors and automotive computer chips, and with it came higher prices due to fewer new and used cars available for purchase.

“So when there (are) fewer cars sold and new cars sold, obviously it has a direct impact on the used market,” Baris Akyurek, vice-president of insights and intelligence at Autotrader.ca, told Global News in an interview. “That’s why we have been seeing inflated prices.”

As 2023 came to a close, however, Akyurek said it has been a “pretty positive” year in terms of availability.

According to Auto Trader’s 2023 trends report released in September, the new car supply had increased from the month prior, with the organization predicting modest increases to inventory in the coming years. New car prices also saw a decline in October, signalling there could finally be a peak in price due to an oversupply of vehicles even with the demand for new cars.

In fact, it notes the new car supply is at its highest level since the middle of 2021, though it still is trying to catch up with “pent-up demand,” with Akyurek explaining there were still 1.3 million fewer vehicles sold between 2020 and 2022.


Click to play video: 'Used car market booms due to new vehicle supply issues'

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Used car market booms due to new vehicle supply issues


This week, DesRosiers Automotive Consultants reported that auto sales jumped 11.8 per cent in 2023 compared to the year prior because of that increased supply. That marks the biggest year-over-year increase since 1997.

Brian Kingston, president of the Canadian Vehicle Manufacturers Association (CVMA), said that an increase in sales will continue this year with a “return to normalcy” expected.

“You’re going to see inventories at regular levels and as a result, Canadians who want to buy a vehicle should be able to go and do so with relative ease and get what they want quickly,” he told Global News.


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“It’s been a long and challenging recovery for the industry to come out of this COVID pandemic shock and all the supply chain issues, but I think we are hopefully seeing that in the rearview mirror, finally.”

Used car market could see more inventory, but fewer sales

That jump in demand for more recent models, however, means there may be less of a demand for used cars, for which prices have been declining since the end of summer. In just December, AutoTrader saw a 2.4-per cent month-over-month decrease, something Akyurek said hasn’t happened before.

But the increased availability may have Canadians still gravitating to the used car market, according to George Iny with the Automobile Protection Association.

He says people are often turning to late-model used cars for their availability, as opposed to the price.

“A typical case would be something like a Volkswagen GTI or a Toyota RAV4 hybrid, that’s a vehicle that someone might be waiting six to nine months to receive a delivery on in 2024, if not longer,” he said. “So the advantage of buying a three-year-old one for roughly the same price as a brand new one is you get it right away.”

Kingston adds during the pandemic it was a “seller’s market” for used cars because of the production issues, but in 2024 he expects with Canadians having much more access to new vehicles they desire, the used market will return more to its normal function.

New car prices are still the higher number, with AutoTrader reporting the average sitting at $67,817, a 19.4-per cent increase year-over-year, while the Canadian Black Book reports used vehicle are at $39,155 which is just a 4.3-per cent rise.


Click to play video: 'Consumer Matters: Why used car prices remain high'

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Consumer Matters: Why used car prices remain high


2024 will see more ‘electrification’: CVMA

The sales of gas-powered vehicles won’t be the only rise in 2024, with Kingston saying there will be continuing “electrification” with more than 40 additional electric vehicle (EV) models rolling out this year.

“If a Canadian wants an EV, there will be something available that will meet their needs,” he said.

He adds there will likely be more adoption of the vehicles by Canadians this year, pointing out that electric vehicles accounted for 12.1 per cent of all new motor vehicles registered in the third quarter of 2023 — according to Statistics Canada. That’s an increase from 8.7 per cent at the same period in 2022.

In light of the federal government’s recently-announced roadmap to have 100 per cent of cars sold in Canada emitting zero emissions by 2035, Kingston said electrification is going to become more of a focus for Canadians.

“Canadians need to start thinking about an electric vehicle for their next car,” he said. “And starting to look at charging infrastructure, can they install a charger at their home, is there charging available at their place of work, will there be public charging available for the road trips they take, this is going to become increasingly important for all Canadians as we move into this new technology.”


Click to play video: 'Consumer Matters: Car buyers facing dealer markups'

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Consumer Matters: Car buyers facing dealer markups


And while inventory is seeing a boost for both the new and used cars, the Ontario Motor Vehicle Industry Council (OMVIC) cautions the market still hasn’t fully recovered to the point where prices will drop substantially.

“Although there has been some alleviation, the expense of acquiring a vehicle remains high for many Canadians, especially when combined with the currently elevated interest rates,” a spokesperson for OMVIC told Global News in an email.

The organization also warns as Canadians look into a potential vehicle purchase, they should also be sure to know how to protect themselves as supply chain challenges and the resulting inventory issues have led to “nefarious” sales tactics. It said this has included pressuring car buyers to purchase additional products with their vehicle, with it sometimes being presented as mandatory.

The spokesperson said car buyers should recognize they have the right to decline sales arrangements, such as charging a market adjustment fee, and if the dealer refuses, Canadians can walk away and buy elsewhere.

with files from Global News’ Kyle Benning and The Canadian Press

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Whitehead becomes 1st CHL player to verbally commit to playing NCAA hockey

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Braxton Whitehead said Friday he has verbally committed to Arizona State, making him the first member of a Canadian Hockey League team to attempt to play the sport at the Division I U.S. college level since a lawsuit was filed challenging the NCAA’s longstanding ban on players it deems to be professionals.

Whitehead posted on social media he plans to play for the Sun Devils beginning in the 2025-26 season.

An Arizona State spokesperson said the school could not comment on verbal commitments, citing NCAA rules. A message left with the CHL was not immediately returned.

A class-action lawsuit filed Aug. 13 in U.S. District Court in Buffalo, New York, could change the landscape for players from the CHL’s Western Hockey League, Ontario Hockey League and Quebec Maritimes Junior Hockey League. NCAA bylaws consider them professional leagues and bar players from there from the college ranks.

Online court records show the NCAA has not made any response to the lawsuit since it was filed.

“We’re pleased that Arizona State has made this decision, and we’re hopeful that our case will result in many other Division I programs following suit and the NCAA eliminating its ban on CHL players,” Stephen Lagos, one of the lawyers who launched the lawsuit, told The Associated Press in an email.

The lawsuit was filed on behalf of Riley Masterson, of Fort Erie, Ontario, who lost his college eligibility two years ago when, at 16, he appeared in two exhibition games for the OHL’s Windsor Spitfires. And it lists 10 Division 1 hockey programs, which were selected to show they follow the NCAA’s bylaws in barring current or former CHL players.

CHL players receive a stipend of no more than $600 per month for living expenses, which is not considered as income for tax purposes. College players receive scholarships and now can earn money through endorsements and other use of their name, image and likeness (NIL).

The implications of the lawsuit could be far-reaching. If successful, the case could increase competition for college-age talent between North America’s two top producers of NHL draft-eligible players.

“I think that everyone involved in our coaches association is aware of some of the transformational changes that are occurring in collegiate athletics,” Forrest Karr, executive director of American Hockey Coaches Association and Minnesota-Duluth athletic director said last month. “And we are trying to be proactive and trying to learn what we can about those changes.

Karr was not immediately available for comment on Friday.

Earlier this year, Karr established two committees — one each overseeing men’s and women’s hockey — to respond to various questions on eligibility submitted to the group by the NCAA. The men’s committee was scheduled to go over its responses two weeks ago.

Former Minnesota coach and Central Collegiate Hockey Association commissioner Don Lucia said at the time that the lawsuit provides the opportunity for stakeholders to look at the situation.

“I don’t know if it would be necessarily settled through the courts or changes at the NCAA level, but I think the time is certainly fast approaching where some decisions will be made in the near future of what the eligibility will look like for a player that plays in the CHL and NCAA,” Lucia said.

Whitehead, a 20-year-old forward from Alaska who has developed into a point-a-game player, said he plans to play again this season with the Regina Pats of the Western Hockey League.

“The WHL has given me an incredible opportunity to develop as a player, and I couldn’t be more excited,” Whitehead posted on Instagram.

His addition is the latest boon for Arizona State hockey, a program that has blossomed in the desert far from traditional places like Massachusetts, Minnesota and Michigan since entering Division I in 2015. It has already produced NHL talent, including Seattle goaltender Joey Daccord and Josh Doan, the son of longtime Coyotes captain Shane Doan, who now plays for Utah after that team moved from the Phoenix area to Salt Lake City.

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Calgary Flames sign forward Jakob Pelletier to one-year contract

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CALGARY – The Calgary Flames signed winger Jakob Pelletier to a one-year, two-way contract on Friday.

The contract has an average annual value of US$800,000.

Pelletier, a 23-year-old from Quebec City, split last season with the Flames and American Hockey League’s Calgary Wranglers.

He produced one goal and two assists in 13 games with the Flames.

Calgary drafted the five-foot-nine, 170-pound forward in the first round, 26th overall, of the 2019 NHL draft.

Pelletier has four goals and six assists in 37 career NHL games.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.



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Kingston mayor’s call to close care hub after fatal assault ‘misguided’: legal clinic

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A community legal clinic in Kingston, Ont., is denouncing the mayor’s calls to clear an encampment and close a supervised consumption site in the city following a series of alleged assaults that left two people dead and one seriously injured.

Kingston police said they were called to an encampment near a safe injection site on Thursday morning, where they allege a 47-year-old male suspect wielded an edged or blunt weapon and attacked three people. Police said he was arrested after officers negotiated with him for several hours.

The suspect is now facing two counts of second-degree murder and one count of attempted murder.

In a social media post, Kingston Mayor Bryan Paterson said he was “absolutely horrified” by the situation.

“We need to clear the encampment, close this safe injection site and the (Integrated Care Hub) until we can find a better way to support our most vulnerable residents,” he wrote.

The Kingston Community Legal Clinic called Paterson’s comments “premature and misguided” on Friday, arguing that such moves could lead to a rise in overdoses, fewer shelter beds and more homelessness.

In a phone interview, Paterson said the encampment was built around the Integrated Care Hub and safe injection site about three years ago. He said the encampment has created a “dangerous situation” in the area and has frequently been the site of fires, assaults and other public safety concerns.

“We have to find a way to be able to provide the services that people need, being empathetic and compassionate to those struggling with homelessness and mental health and addictions issues,” said Paterson, noting that the safe injection site and Integrated Care Hub are not operated by the city.

“But we cannot turn a blind eye to the very real public safety issues.”

When asked how encampment residents and people who use the services would be supported if the sites were closed, Paterson said the city would work with community partners to “find the best way forward” and introduce short-term and long-term changes.

Keeping the status quo “would be a terrible failure,” he argued.

John Done, executive director of the Kingston Community Legal Clinic, criticized the mayor’s comments and said many of the people residing in the encampment may be particularly vulnerable to overdoses and death. The safe injection site and Integrated Care Hub saves lives, he said.

Taking away those services, he said, would be “irresponsible.”

Done said the legal clinic represented several residents of the encampment when the City of Kingston made a court application last summer to clear the encampment. The court found such an injunction would be unconstitutional, he said.

Done added there’s “no reason” to attach blame while the investigation into Thursday’s attacks is ongoing. The two people who died have been identified as 38-year-old Taylor Wilkinson and 41-year-old John Hood.

“There isn’t going to be a quick, easy solution for the fact of homelessness, drug addictions in Kingston,” Done said. “So I would ask the mayor to do what he’s trained to do, which is to simply pause until we have more information.”

The concern surrounding the safe injection site in Kingston follows a recent shift in Ontario’s approach to the overdose crisis.

Last month, the province announced that it would close 10 supervised consumption sites because they’re too close to schools and daycares, and prohibit any new ones from opening as it moves to an abstinence-based treatment model.

This report by The Canadian Press was first published Sept. 13, 2024.

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