TORONTO — 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.
But there are not enough used cars in the market to meet the growing demand. DesRosiers Automotive Consultants Inc. says dealers are having a hard time getting used cars and projects a slowdown in sales in the coming months. On average, he said, people look to sell their vehicles after four or five years of ownership and move on to newer make."Now, they're hanging on to the cars double that time, which means more money in the service business — oil change, brake repairs and maintenance."
Daily rental fleets are also following in the footsteps of regular buyers and holding on to the vehicles longer because they can't replace the old fleet with the new ones. That means those cars aren't entering the used market as expectedBetween 2020 and 2021, used car prices soared 34.5 per cent as car manufacturers dealt with unprecedented backlogs in the supply of car parts to bring new vehicles to showrooms.