Canadians continued to lose interest in aspirational vehicles and were on the hunt for more affordable options in 2024, according to new annual data from the AutoTrader marketplace. In 2024, shoppers searched for luxury vehicles at the lowest rate since 2019.
Although the nation’s consumers were just as eager to buy a car in 2024 as the previous year (in fact, intent to purchase rose one percentage point to 27 per cent) there were no luxury vehicles in AutoTrader’s Top Sold list for the second year in a row.
Meanwhile, more affordable vehicles like the Ford F-150 (both the most searched-for and the most sold vehicle on the AutoTrader marketplace), the Toyota RAV4, and the Honda CR-V were high on the list of vehicles that Canadian consumers were looking for. Indeed, 84 per cent of buyers say that high vehicle prices are influencing their purchase decisions.
The Ford F-150 has been the top searched vehicle annually since AutoTrader began publishing Top Search data 10 years ago. The Top Sold list was introduced more recently and reflects that what Canadian consumers are searching for isn't necessarily what they're buying. Luxury vehicles typically feature heavily on the Top Search list but not on the Top Sold list, revealing that many AutoTrader users search rather aspirationally but buy more practically.
The shift away from luxury vehicles reflects more than just consumers’ focus on affordability, though. As we recover from the pandemic and production capacities return to normal, automakers are putting less of a priority on high-profit premium vehicles, meaning that inventory is up for mass-market vehicles.
Still, Canadians are looking for a deal, and that’s pushing buyers to keep their options open. Nearly half of used car buyers were also considering a new vehicle, while 36 per cent of new vehicle buyers said they were willing to consider a used vehicle.
Concerns about affordability may also be helping passenger cars maintain a strong presence in the automotive marketplace. In 2024, cars accounted for 49 per cent of all vehicle searches on AutoTrader. After years of sliding sales, the relative affordability of the body style helped it remain the biggest in Canada.
However, that’s not to say that consumers have lost interest in SUVs. Once again, searches for this body style increased, accounting for 40 per cent of all of vehicle searches in 2024 — up two per cent from 2023. Automakers were ready to capitalize on this continued growth, and SUV inventory was up 43 per cent this year.
Intriguingly, pickup trucks were the only body style that saw some contraction, albeit not much. Although interest in these utilitarian vehicles was stable in 2024, they weren’t as highly represented in the AutoTrader Top Sold list. A year ago, pickups made up 40 per cent of the list. This year, they represented just 20 per cent of the list.
It was also a difficult year for the electric vehicle (EV) market. While search interest in these vehicles was up 9 per cent in 2024, purchase consideration was down for the second year running. Whereas more than half of non-EV owners were considering an EV in early 2023, that number fell 10 percentage points, to 46 per cent, in 2024.
The shrinking interest in EVs may be influenced by Canadian consumers’ focus on affordability. AutoTrader data showed that interest in these vehicles was highest in provinces with strong incentives. Indeed, Quebec and British Columbia led the nation in EV searches, reflecting their provincial governments’ generous tax credits.
Further eating into EV sales are hybrid vehicles. Following a significant increase in hybrid vehicle listings, 62 per cent of consumers who said they intend to buy an EV are now considering a hybrid and 60 per cent say they’re considering a plug-in hybrid.
Despite this focus on affordability, the Canadian automotive market is still strong and shows signs of staying that way. Although affordability is a concern, consumers’ economic outlook seems to be improving. In 2024, 53 per cent of Canadians said they believed their finances would improve in the next six months, as compared to just 45 per cent a year earlier.
