For the first time in years, car shoppers are having an easier time finding a deal as the auto industry bounces back from supply chain woes 害羞草研究所� and experts say the outlook could get even better.

Sticker prices at dealerships have started to come down and affordability is improving, said Daniel Ross, senior manager of industry insights with Canadian Black Book.

害羞草研究所淭he new car market is normalizing faster than the used car market,害羞草研究所� he said. 害羞草研究所淵ou have the inventory, you have the incentives depending on where you害羞草研究所檙e shopping and if you were a new car shopper from the beginning, it害羞草研究所檚 the best situation you害羞草研究所檝e had in a long time.害羞草研究所�

Inventory of new cars has built up across the country as prices for newer models climbed and consumers pulled back on big purchases amid high inflation and rising interest rates. Now, manufacturers and dealerships have launched incentives and rebates as they look to clear that supply.

On new cars, dealerships can offer internal financing from manufacturers and control the rates independently from bank rates, said Sam Fiorani, vice-president of global vehicle forecasting at AutoForecast Solutions.

害羞草研究所淚nstead of offering rebates, they lower interest rates which make deals better for the consumer.害羞草研究所�

Homeowners are watching the Bank of Canada害羞草研究所檚 every move as they hope for lower borrowing rates, but a vehicle purchase works somewhat differently, said Shari Prymak, a senior consultant at non-profit Car Help Canada. When financing through a dealership, the interest rate depends on the given make or model.

害羞草研究所淭he rates that the manufacturer sets are mainly tied to the vehicle availability,害羞草研究所� he said.

害羞草研究所淚f the vehicles have a very good supply, they害羞草研究所檒l incentivize the interest rates and bring down the rates,害羞草研究所� Prymak said. 害羞草研究所淏ut if the vehicle doesn害羞草研究所檛 have any supply, if it has a long waiting period, because it害羞草研究所檚 in short supply, the rates won害羞草研究所檛 be incentivized.害羞草研究所�

Manufacturer financing rates on new cars could be about five to seven per cent without incentives, which can be lower than rates on used cars but still higher than pre-pandemic levels. The used car market, on the other hand, can see rate changes more in line with central bank decisions but the prices continue to remain high, Prymak added.

As vehicle availability continues to improve, more incentives and offers are coming to the table for customers 害羞草研究所� bringing more negotiating ability, he added.

But the market isn害羞草研究所檛 yet fully corrected and it could be another year before it normalizes.

A report by TD Bank published in May shows inventory levels will continue to rise but demand could be nuanced as economic headwinds, especially in the housing sector, could influence sales as more households save to either buy a home or keep up with their mortgage payments. The bank estimates auto sales this year will grow 9.6 per cent and reach pre-pandemic levels in 2025.

Prymak suggested it is ideal to wait another six months for a better deal on new cars 害羞草研究所� especially for vehicles with tighter supply and longer wait periods which will not have good incentives from manufacturers.

Asian brands building hybrid vehicles such as Toyota, Honda and Hyundai still have limited supply in Canada so there will be fewer incentives.

Many would-be buyers held off on vehicle purchases over the past few years 害羞草研究所� spending instead on repairs and maintenance to keep their aging vehicles alive. But for consumers who can害羞草研究所檛 hold off anymore, Prymak suggested going for a new car that has ample supply.

North American automakers including Ford, General Motors and Stellantis have larger inventory and may have better deals and incentives for customers, Prymak said. Luxury European brands, including Mercedes, BMW and Audi could also be good options for discounts.

Among widely seen offers on North American brands are cash incentives on certain vehicle models, going as deep as 15 per cent on market retail prices. Discounts on lease rates are also growing. Meanwhile, negotiating expenses such as warranty on rust protection or theft protection products can save thousands of dollars.

Prymak suggested researching vehicle models, shopping around for the best quote from a dealership ahead of time and asking for an itemized breakdown of the quote to make sure the shopper isn害羞草研究所檛 paying for additional products.

害羞草研究所淒on害羞草研究所檛 be afraid to negotiate with them to get a better deal because supply is improving, buyer害羞草研究所檚 negotiating ability is starting to slowly come back,害羞草研究所� he said.

害羞草研究所淭ake advantage of that.害羞草研究所�

The same idea applies when shopping for the best interest rate. For new vehicles, manufacturers often have lower rates than the bank rate or a line of credit. But for used cars, shopping around is integral to finding the best bank or credit option.

While the new vehicle market recovers faster overall, Ross said it has a long way to go and remains mixed at best.

害羞草研究所淚t害羞草研究所檚 a better scenario than it was 害羞草研究所� but we were coming from a very poor scenario,害羞草研究所� Ross said of the auto market.

害羞草研究所淚f you害羞草研究所檙e looking for my car advice, I would say don害羞草研究所檛 shop yet if you don害羞草研究所檛 have to.害羞草研究所�

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Ritika Dubey, The Canadian Press