Used cars aren't the bargains in this country they used to be, or so say the figures, this as the coronavirus pandemic strains supply of pre-owned vehicles and demand continues to increase.
According to a survey of used car dealers conducted by Desrosiers Automotive Consultants, nearly 70% of dealers reported the price of a used vehicle increased in July. Sales have also jumped, with nearly 40% of used car dealers reporting an increase sales in July as demand returned.
Most used car dealerships were forced to close their doors to the public in mid-March due to the pandemic, as the government imposed lockdowns on non-essential businesses, which included car dealerships. But by July, Desrosiers said 48% of used car dealerships had resumed operations and were operating regular hours. Another 47%were operating reduced hours, and just five per cent were completely closed.
As demand returns, the price of used vehicles has also increased.
Part of the supply issue is that car auctions – a critical source of pre-owned vehicles for dealers – were also forced to shutdown when the pandemic hit.
Some experts opined sales to the United States have also exacerbated the supply issue.
Others have said many dealerships are struggling to find popular vehicles to meet demand levels. They add some of the increased demand is a result of people looking to purchase a vehicle for the first time.
