Demand and value for used vehicles spike amid chip scarcity


On the subject of used vehicles it is a vendor’s market. Mickey Cleroux is seeing it first-hand. 

“Our buyer base has gone up. We have began to see much more prospects, in all probability, I might say, a few 10 per cent enhance,” mentioned Mickey Cleroux, Automax gross sales supervisor.

The shortage of recent vehicles on account of a microchip scarcity has pushed extra prospects to the east-end dealership. The chip scarcity has additionally precipitated used automobile costs to spike.

Mickey Cleroux is gross sales supervisor at Automax pre-owned automobile heart. (Darrin Di Carlo/CBC)

A survey achieved by AutoTrader.ca, an internet web site that carries categorized adverts for folks shopping for and promoting vehicles, revealed that 27 per cent of people that used to solely purchase new vehicles are actually prepared to purchase a used automobile.

“There’s simply much more demand for each new and used automobiles, which is driving up the costs,” mentioned Editor-in-Chief Jodi Lai. “In August 2019, earlier than the pandemic, the typical value for a used automobile in Canada was $25,841. In August of 2021 the typical value for a used automobile jumped to $29,376, that is a 14 p.c enhance,” mentioned Lai.

Automotive journalist Kay Layne says the costs have jumped 25 per cent within the final 12 months. Moreover the microchip scarcity, Layne factors to COVID-19 as one other issue driving up the price of used vehicles.

Used automobile costs are method up; auto journalist Kay Layne explains why

Auto journalist Kay Layne says used automobile costs are up 25% and there are numerous the explanation why.

“Throughout COVID, with folks not driving as a lot, they weren’t turning of their automobiles and upgrading,” mentioned Layne, including that individuals who needed to commute and have been afraid to take transit went out and acquired “a bunch of used vehicles.” She predicts the excessive demand for used vehicles will proceed for “fairly some time”.

Layne additionally says that the mix of used vehicles promoting effectively and fewer commerce ins has additionally led to a lowered stock of used automobiles to go round.

Jodi Lai is the editor-in-chief of AutoTrader.ca. (Dale Molnar/CBC)

“Dealerships are actually paying high greenback to purchase used automobiles from common shoppers and whereas which may appear to be a detrimental it is really factor in the event you’re promoting your automobile, you may get a reasonably excessive commerce in worth proper now,” mentioned Lai, including that there are at the moment 200,000 used vehicles out there available on the market all through Canada proper now.

Cleroux says there are fewer automobiles at public sale so he has needed to resort to some inventive methods to search out automobiles.

“We have beefed up our stock as a lot as we are able to. We have been buying automobiles off the streets. Any buyer, or earlier buyer or mates of consumers that had a automobile that they are taken with eliminating, they convey it to us for a free quote,” mentioned Cleroux, who has bought six automobiles within the final week that method.



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