Used cars market faces supply crunch in aftermath of supply chain woes

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The used car market is still experiencing a shortage of vehicles even as the automotive sector recovers from supply chain woes that have plagued the industry since the onset of the COVID-19 pandemic.

Used vehicles became an alternative to consumers when the supply of new vehicles was severely limited during the pandemic, says Daniel Ross of automotive insights company Canadian Black Book, and prices for used cars started to rise.

At least 51 per cent of the car dealers surveyed said their sourcing troubles for used vehicles have worsened since the pandemic, a report earlier this month by DesRosiers found. A separate survey by DeRosiers shows that aftermarket retailers reported higher sales for automobile parts during the first quarter of 2023 -- most of them having better sales compared to pre-pandemic levels.

Now that the cost of used cars is stabilizing, people who may have been sitting on the fence in the last two years because of high prices are getting into the market.

 

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