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.
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