Car manufacturing plants have been shut down due to the COVID-19 pandemic, there’s a huge backlog of orders for Computer chips, and several commuters who ditched public transit and bought their first cars.
The Canadian auto sector is experiencing a perfect storm, which is resulting in a shortage of new and used cars, as well as rising prices.
Warren Barnard, the executive director of the Used Car Dealers Association of Ontario said, “If people have to wait two or three months to get a new vehicle, they will buy a used one, so demand is up there [in the used vehicle market],”
In Canada, new car inventory is down approximately 20%, but it’s down about 50% in the United States.
Because Americans are in the same situation, so some American dealers are purchasing used cars at auto auctions north of the border at prices that Canadian dealers can’t compete with.
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