The prices of new and used cars continue to rise, with inventory levels dropping and demand increasing.

A report from AutoTrader's New Car Price Index found that the average price of new cars in June 2023 reached $66,288 in Canada, up 21.3 percent from June 2022.

The average price of used cars was $39,645, an increase of 4.1 percent from the same period last year.

For its part, AutoTrader stated that the cost of new and used cars is not only increasing, but consumers also need more time to pay for them, as the length of loans increased from 68 months in 2019 to 72 months now.

Meanwhile, many car buyers are choosing to purchase used cars because the new vehicles they want are not available.

Additionally, inflation and rising interest rates are increasing the cost of buying new and used cars, with the average monthly payments for used cars rising from $466 in 2019 to $639 in 2023.

It is worth noting that although new car inventory levels have continued to rise since last year, they do not meet the current high demand, but as they continue to rise, prices may decrease in the future, according to AutoTrader.