With ever-increasing prices and higher interest rates, it can be harder to switch vehicles. Why not extend the life of the one you have? All it takes is a little planning to avoid unpleasant budget surprises.
When the suspension of her 2014 Mazda CX-5 failed last spring, Geneviève Boucher did not hesitate to shell out $2,000 to fix the problem. With the current prices in the new and used markets, there was no question of going in search of a new vehicle.
“In the category we want, we’re talking about at least $40,000,” she says in an interview. It is expensive. Why change when our vehicle is still doing the job? We had planned for this expense [the repair] and we have no monthly payments. »
Mrs. Boucher is not the only one to think so. In both Canada and the United States, the average age of the vehicle fleet has been rising, especially since the start of the pandemic. According to data from the Société de l’assurance automobile du Québec (SAAQ), the average age of 7.5 years in 2020 had reached 8.1 years last year.
Several factors explain this increase. The COVID-19 pandemic has disrupted the production rates of automakers, causing a shortage of new vehicles and an increase in demand in the used market – a situation that has not yet fully returned to normal. Added to this is the rise in interest rates, which is encouraging a growing number of motorists to extend the life of their car rather than changing it.
Philippe Lévesque came to this conclusion. After weighing his options, he decided to loosen the purse strings to give his 2011 Subaru Impreza a facelift, which has about 140,000 km on the odometer. Timing belt, new spark plugs, welding of the exhaust line, oil pressure sensor… The bill came close to $3,000, but in the medium term, the problems seem to be resolved.
According to the AutoHebdo price index, the average price of a vehicle reached $64,215 last June, which represents an increase of 27.3% compared to the same period a year ago. At dealerships, entry-level models are sometimes less available than more expensive versions with more options, which pushes prices up. This statistic also takes into account sales of luxury vehicles and vans, whose average prices are higher.
In the used car segment, the increase is less pronounced, but you still had to pay an average of $37,365 (5.3%), according to data from AutoHebdo.
“In both cases, I find it’s not affordable,” said Philippe Lévesque, owner of a 2011 Subaru Impreza. The repairs were expensive, but I don’t have monthly payments. I didn’t want to get into that. »
Another element explains the rise in average prices. Over the years, the low-end car has practically disappeared from showrooms. Only three models remained in the segment prized for affordability: the Kia Rio, the Mitsubishi Mirage and the Nissan Versa.
There will soon be two left since the production of the Rio will cease. The 2023 version of this car retails for $19,909. Next in the price range is the Seltos subcompact crossover at $27,809. There is therefore a difference of several thousand dollars between the two product categories.
“We’re seeing fewer affordable cars being offered,” said Patrick Saint-Pierre, sales manager at Groupe Monaco, an auto parts distributor. Fit (Honda), Yaris (Toyota) and Micra (Nissan), we no longer sell them. To limit his expenditure, the consumer therefore has two options: maintain his vehicle or turn to the second-hand market. »
Mr. Saint-Pierre says business is good in the repair space. The manager of the company, which started in 1960, says “2022 has been a great year for the industry.”
The trend, however, could run out of steam as dealer inventories approach pre-pandemic levels, said Jean-Francois Champagne, president of the Automotive Industries Association of Canada. Consumers may also be tempted to switch if interest rates stop rising.
Aside from money issues, there may also be another reason motorists pay for repairs: the wait for EVs. Some don’t feel like turning to a transition car while they wait for an electric model. They therefore stretch the life of their vehicle.
Mrs. Boucher thinks about it.
“Ideally, it would be to buy an electric model in the same format [as our CX-5] in the future,” she says. But the options are not yet many. We want to take the time to shop. I have friends who waited a year before receiving their electric car. It has to be foreseen. »
How much does it cost to give your vehicle some love?
You can save money by extending the life of your vehicle, but you have to give it a little love when it needs it. It is better to build up a reserve to avoid unpleasant surprises when you have to visit your mechanic.
Planning is key, says Boucher. This is what allowed his family to keep their CX-5 in good condition after the warranty ended.
“You have to nurture it from the start,” she said. You have to put some heart into it. If you neglect your vehicle, it could be a dumpster in 10 years. »
But how much should you budget for in order to properly maintain your vehicle? An online tool developed by CAA to calculate the costs of using an automobile provides an idea. By entering information such as year, model, mileage and distance driven annually, it is possible to get an idea of the maintenance costs “to keep the vehicle in good working order”.
The nonprofit explains that the tool’s calculations take into account the “maintenance schedule, but also contingencies”, such as a flat tire or a flat battery.
In the case of a 2014 Mazda CX-5 (Geneviève Boucher’s vehicle), annual maintenance costs are estimated at nearly $1,900. This does not include the cost of insurance, driving license and registration fees. For a 2017 Ford F-150, the annual maintenance bill jumps to nearly $2,400.
“For us, everything was paid for with a budget,” says Ms. Boucher. Over the years, parts cost more and more. »
At the Monaco Group, Patrick Saint-Pierre agrees. In the workshops, the average bill is also increasing. Over the years, vehicles have become more complex, with the addition of electronic modules that are more expensive to repair or replace.
“Age always comes into play,” he says.
According to data compiled by the Automotive Industries Association of Canada, car owners spent an average of $818 per year in 2016 on repairs and maintenance. This average jumped 12% to nearly $915 in 2021.
The group did not have more recent data, but with an increase in the average age of vehicles on the roads, everything indicates that this progression has continued.