Is it a good time to buy a new vehicle?

If you're like many would-be vehicle shoppers, you may be wondering when prices will finally drop. The good news is that the vehicle market seems to be finally stabilizing, says personal finance contributor Christopher Liew

If you’re like many would-be vehicle shoppers, you may be wondering when prices will finally drop.

For the past two years, the high cost of new and used vehicles has repelled many Canadians who may have otherwise considered trading their vehicle in or buying a new one.

The good news is that the vehicle market seems to be finally stabilizing, which means that the cost of used and new vehicles could drop significantly in the coming months.

Today, I’ll explain why vehicle prices might drop and outline some driving forces behind the current cost of vehicles in Canada.

The price of new and used cars, as well as commercial vehicles such as trucks, tractors, and transport vans, can vary significantly, depending on a number of factors and economic conditions.

The majority of vehicles utilize parts that come from all around the world. For example, Japanese manufacturers may source chips from Taiwan, U.S. manufacturers may source suspension components from China, and so on.

The past few years have been marked by global political and economic uncertainty, which has caused significant price increases in everything from building materials to gaming systems and, of course, vehicles.