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
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
Police tangle with students in Texas and California as wave of campus protest against Gaza war grows
Police tangled with student demonstrators in Texas and California while new encampments sprouted Wednesday at Harvard and other colleges as school leaders sought ways to defuse a growing wave of pro-Palestinian protests.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
Pilot reported fire onboard plane carrying fuel, attempted to return to Fairbanks just before crash
One of the two pilots aboard an airplane carrying fuel reported there was a fire on the airplane shortly before it crashed and burned outside Fairbanks, killing both people on board, a federal aviation official said Wednesday.