Low supply and high demand driving up car prices in Waterloo Region
Car dealerships in Waterloo Region admitted they are busier than ever but supply isn’t coming in fast enough to meet up with demand.
Carimex Auto Sales has about 65 used cars in their Waterloo lot but they usually have about double that.
“Right now we’re actually at an all-time low,” said general manager Peter Mioduszewski.
A School of Engineering professor at the University of Guelph said the lack of inventory is a global issue.
Dr. Stefano Gregori pointed to the pandemic as one of the main culprits in the shift in the automotive industry. He said the demand was generally low for vehicles during the pandemic, while many were not driving as much, and it’s been difficult to adjust to the sudden surge this year of more people looking to buy.
The pandemic, paired with a shortage of car parts for new vehicles, has a trickledown effect, and is impacting used vehicles, and a shortage of car computer chips, adds to the problems the auto industry has been facing.
“Now the production has to go back to an increased demand for automotive chips and changing takes time,” said Dr. Stefano Gregori.
Consumers can expect to pay more when buying used or new vehicles.
Staff at Carimex said while they will help customers get the best deal they can offer, they don’t have much of a choice.
“What I was selling them at the start of the summer that’s what I’m paying for them now in auction,” said Mioduszewski.
Terry Torra bought his 2014 Hyundai Santa Fe XL Limited at the beginning of September, from Carimex.
“Another $5000 more than what I expected. But it’s worth it,” said Torra.
Torra said he looked at about 40 or more other vehicles at other places before finding the right one.
“I didn’t find what I want. I started going out to dealers. And they were just saying we don’t have much on the lot,” said Torra.
Carimex staff suggest trading-in an old vehicle like Torra did with his 2011 BMW.
“In a year’s time, whenever you’re ready to buy another vehicle hopefully the prices will be normalized,” said Mioduszewski.
CTVNews.ca Top Stories
Spectacular aurora light show to be seen across Canada Friday night
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Town of Fort Nelson, B.C., ordered to evacuate due to wildfire
The entire town of Fort Nelson, B.C., as well as the nearby Fort Nelson First Nation, has been ordered to evacuate due to an out-of-control wildfire.
Snowbirds in Vancouver for puck-drop flyby as Canucks face Oilers
The Canadian Forces Snowbirds will be performing a flyover across downtown Vancouver at the start of tonight's Stanley Cup playoff game between the Canucks and the Edmonton Oilers.
McGill University seeks emergency injunction to dismantle pro-Palestinian encampment
McGill University has filed a request for an injunction to have the pro-Palestinian encampment removed from its campus.
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
Video shows naked raccoon catching B.C. family by surprise
When Marvin Henschel spotted a strange and hairless creature wandering through a front lawn in B.C.'s Lower Mainland, he could barely believe his eyes.
Barron Trump declines to serve as an RNC delegate
Former U.S. President Donald Trump's youngest son, Barron Trump, has declined to serve as a delegate at this summer’s Republican National Convention, according to a senior Trump campaign adviser and a statement from Melania Trump's office.
Out-of-control wildfire prompts evacuation alert for Fort McMurray, Saprae Creek Estates Friday night
An evacuation alert was issued for two Wood Buffalo communities Friday night, as crews battled an out-of-control wildfire near Fort McMurray.