Unfortunately it is currently a seller’s market, meaning that the demand for vehicles is greater than their supply. The supply chain crunch for cars is mainly a result of the continual shortage of computer chips. From car sensors to control systems (ie, controls for windows or audio systems), these $1 computer chips must be used to manufacture the various essential parts of a modern vehicle.
Thus, buyers wanting to buy a new vehicle are often wait-listed. Apparently there’s a 4-year waiting period for those looking to purchase a popular brand of pickup truck.
Another peculiar phenomenon is the appreciation of used vehicles. For example, people who didn’t want to wait 4 years for a brand new pickup would bid for a used one, and some were willing to pay ~$10,000 above the market value for a second-hand truck.
Sellers of used vehicles have been making capital gains on their year-old cars ie, instead of the expected 20% year-on-year depreciation, to their pleasant surprise they were making a 25% profit on cars that they had driven for around a year.
Dealerships for used vehicles are also taking advantage of the fact that they have the upper hand as sellers. One such dealership even refused to sell a used car to a buyer who offered to pay in full; they wanted the buyer to finance a car loan with them so they could take a cut based on the financing agreement! (At this point if you are thinking ‘Are you kidding me?’ then welcome to the club – that was my exact reaction too.)
News-plus.ca 