VANCOUVER (NEWS 1130) – An increase in the number of used Canadian cars, trucks and SUVs being sold to the US seems to be driving up prices for people here according to industry experts.
The low loonie isn’t the only reason for the spike, industry experts say the 2008-2009 recession in the US has caused a shortage of used car inventory now. That’s because during those hard times people were buying fewer new cars, so now there are few used vehicles.
“Obviously [dealers here are] going to be looking for opportunities to maximize their revenue. That’s one way to do it, is to find the market where they’re going to get the best dollar value,” explains Auto Retailers Association President Ken McCormack.
All of this means impacts for consumers here in Canada.
“Certainly it reduces the amount of stock available. I guess some of the dealerships that plan for this sort of thing also recognize that with a continued shortage of vehicles in Canada because they’re going south, those vehicles will become more attractive at a higher rate here in Canada as well,” adds McCormack. “For consumers looking for product, it’s going to be difficult to find if they’ve got specific models, makes and years in mind. [And] even if they do find it, they’ve got to understand or appreciate that they’re going to be dealing with perhaps higher value for those vehicles than they might have had a year or two ago.”
He believes the increase has been going on for about four to six months.
“We certainly don’t see anything changing in the next year or so,” he says. “It’s a supply and demand situation. Obviously with an unlimited supply of vehicles we can satisfy everybody but it’s like everything else, sales are going to move to the market that generates the highest return.”
Some local sellers tell NEWS 1130, dealers in the US have been actively seeking them out.
McCormack took time to speak with us on the air.