Are you rubbing your hands together with glee at the 21.3 percent pay rise your boss gave you over the last 12 months? We’re guessing not, and that could be a real problem if you live in Canada and are thinking about buying a new car.

The average price of a new vehicle in Canada this June stood at a record $66,288CAD according to an AutoTrader price index report. If that sounds steep, you’re not wrong. Last year’s June figure stood at just $39,645CAD, meaning the average price has risen by a staggering 21.3 percent. And in case you’re wondering, that is a freakish increase – the 2022 number was only up 4.1 percent over June 2021’s price.

Those figures are quite different to the ones released by Kelly Blue Book earlier this month covering the U.S. market. KBB’s data showed that American new vehicle prices in June 2023 had only risen by 1.6 percent over the previous 12 months, though the $48,808 U.S. dollar price average equates to $64,379CAD, so not much below Canada’s $66,288CAD.

Related: Average Transaction Prices Fall Below Average MSRP In The U.S. Market

 Average New Car Price Hits $66k In Canada, Higher Than In America
SUV prices rose by 16 percent, but cars were up almost 40 percent

Looking at the individual segments shows that while trucks have the highest average new price of any vehicle in Canada, at $75,072CAD, they have increased by the smallest amount: just 7 percent year-on-year. SUVs and minivan prices have swelled 16 and 18.4 percent respectively, but car prices have shot up by 39.6 percent to $56,264CAD.

Though inventory levels have recovered from last year’s low, supply of SUVs and cars remains below where it was at this point in 2021 and demand has stayed strong, at least for now, helping accommodate the steep price rise. But it’s no wonder data also shows that consumers are needing more time to pay for their new cars. Loan terms now average 72 months versus 68 months in 2019, Toronto’s CTV News reports.

So what’s the best advice for a cash-strapped, car-shopping Canadian? Buy used. AutoTrader’s figures show that the average used vehicle price has only risen by 4.1 percent in the year to June, well below the 21.3 percent uplift experienced by their new counterparts.