The used car market is booming in light of new vehicle supply issues, according to experts in the business.
“If I have a car for $5,900, advertised it Saturday, it’s gone,” said Tom Renville from No Name Auto.
Backlogs and pandemic-related supply chain issues for new vehicles are putting added pressure on the used car market and on the prices.
“It’s a very very tough market, the used car prices are going up. Cars are coming to the auction, so for us used car dealers, we really have to scramble to find good quality cars,” Renville added.
However, the market is beginning to cool and return to some level of normalcy, according to Frank Veert, president of the Manitoba Motor Dealers Association.
“With the supply getting back up, we’re getting back into the normal car business, which is vehicles depreciate as they’re used and the warranty is used,” he said.
And in turn, it’s also having an impact on new vehicles. “Some of the customers who have purchased vehicles from us in the past two or three years are trading in on a new vehicle and getting what they paid — in some cases maybe even more,” said Jason Cross, vice president at Jim Gauthier Cadillac Buick GMC.
Cross said that although production is increasing, there are still a number of hurdles for the industry including the recent BC port strike and associated rail delays.
“A lot of issues we’re seeing in Canada now are logistics,” Cross said. “So getting the vehicles from the factories, now that the factories have started to increase their production.”
Cross said the key is doing homework ahead of time to ensure people have a smoother ride.
— with files from Global’s Marney Blunt