The used-vehicle market is booming from the supply chain disruption starting in the summer of 2020, making it a good time for sellers. With the economy reviving and also a shortage of new vehicles because of a global chip shortage, demand and prices for used vehicles are surging. But there’s at least one upside for car shoppers: Trade-in values for your older vehicle are spiking, too (10% to 20% increase on Trade-in values compared to Pre-Summer 2020).
Vehicle Prices are UP
Dealers have fewer used vehicles than normal to offer (Low supply and high demand). But Canadian are still buying them. With vaccinations making their way across the country and offices and schools beginning to reopen, Canadians are shopping again. The current low supply and high demand as pushed used vehicle prices up to the clouds.
How the Global Computer Chips Shortage is Affecting the Canadian Automotive Market?
Shortages in the semiconductor industry, which have already slammed automakers and consumer electronics companies, are getting even worse, complicating the global economy’s recovery from the coronavirus pandemic.
Chip lead times, the gap between ordering a chip and taking delivery, increased to 17 weeks in April, indicating users are getting more desperate to secure supply, according to research by Susquehanna Financial Group. That is the longest wait since the firm began tracking the data in 2017, in what it describes as the “danger zone.”
Why Today Is A Good Time to Trade-In Your Used Vehicle?
A used vehicle crunch across Canada has put a new spin on how people buy and sell used vehicles. There’s an extreme shortage of vehicles between two and seven years old, and if you’re driving one, this is the perfect time to trade it in and get an upgrade! Just fill out our online application and see what Mobile Auto can offer you.