The semiconductor chip shortage has been plaguing the auto industry for months now. The shortage has led to many manufacturers not being able to produce the units necessary to support the recent demand influx.
With COVID-19 lockdown regulations finally easing up across Canada, many Canadians are itching to travel, hence the soaring demand for vehicles right now. As with any case where demand exceeds the supply, this has significantly increased vehicle pricing across the board.
New car inventory in Canada is down 20%, according to James Hancock, director of business development for Canadian Black Book – and in the U.S. inventory is down 50%. Since new cars are both more expensive and increasingly hard to come by, many consumers have turned to used vehicles. But with the demand increasing on both ends, consumers might be surprised at ticket prices when they go shopping for a used vehicle this summer.
Not how it used to be…
According to Autotrader.ca, an online automotive marketplace that tracks pricing shifts based on its listings, the average price of a used vehicle in June 2021 was up 9.4% to $28,305.
"This is the highest average price of a used vehicle that has been recorded," said Baris Akyurek, director of marketing intelligence at AutoTrader.ca.
But this has created a unique opportunity for both Canadian dealerships and consumers...
For consumers, the value of their trade-in vehicle has never been higher, and for dealers who have inventory – the summer sales forecast looks bright!
Easy payment plans to help with the demand
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Our auto financing solutions make it easy to get you customers approved and get your dealership paid within a matter of days.
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