The uptick in average sale price is due to longer financing terms for
buyers. According to the Financial Consumer Agency of Canada (FCAC),
Canadians are "increasingly purchasing more car that they can afford,"
due to longer financing becoming fashionable. The agency notes that
average leases have crept up 2 months, every year since 2010. According
to the Bank of Canada (BoC), the average loan was 74 months as of 2015.
Longer terms bring down monthly payments, but increases the total cost
of the loan.
... The right to debt seems to be a topic all Canadians
are embracing, and the auto sector is no different. The BoC has
estimated that 25% of borrowers are non-prime, which incase you didn't
know is Canadian-English for "sub-prime."... The boom of vehicle sales
should be an indicator of a healthy economy, but is actually a drag due
to the dependence on credit.