Used car market faces supply crunch as inflation spurs drivers to search for cheaper wheels

The supply constraint is partly because people are holding on to their vehicles longer than usual, creating a bottleneck in the supply chain for used cars, says Jim Hamilton, interim manager at the Used Car Dealers Association of Ontario.

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. 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 expectedArticle contentBetween 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.

Limited financing options are also a factor in making the used car markets more attractive for buyers, said Ronald Corbett, vice-president for Toronto and southwestern province at Desjardins Ontario Credit Union.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Used cars market faces supply crunch in aftermath of supply chain woesThe 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.
Source: CTVNews - 🏆 1. / 99 Read more »

Used cars market faces supply crunch in aftermath of supply chain woesTORONTO — 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. 'But after the increase of interest rates and inflation
Source: YahooFinanceCA - 🏆 47. / 63 Read more »