Car buyers across Canada still facing months-long delays

In the market for a new ride? Auto insiders warn new car buyers in Canada are still facing months-long delays.

At a Hyundai dealership in downtown Toronto, the manager told CityNews around 95 per cent of the vehicles on his lot are already spoken for, with buyers waiting on average two-and-a-half months for their new wheels to hit the road. For fully electric vehicles, the wait is closer to a year.

The president of Global Automakers of Canada, David Adams, said supply chain issues for parts and chips that began at the start of the pandemic continue to impact vehicle availability on lots.

“As far as inventory levels at dealerships, it depends to a certain degree on the manufacturers,” Adams said.

According to AutoTrader.ca, inventory for new vehicles is replenishing, except for minivans.

“Looking at our own data, we are seeing a 39 per cent year over year increase,” said Baris Akyurek, VP of Insights and Intelligence.

But supply hasn’t caught up to pre-COVID levels, meaning shoppers may still have a hard time finding their car of choice.

“This is purely a supply situation,” he said. “Whenever there’s availability, cars are getting sold, which indicates there’s still quite a bit of pent-up demand.”

Autotrader’s marketplace traffic shows consumer demand for new and used vehicles is stronger than anticipated so far in 2023, despite inflation’s sting.

That putting pressure on prices. In March, the cost of a used vehicle remained stable at just over $39,00. In contrast, new vehicle prices hit a record high of nearly $62,00, representing a 17 per cent year-over-year increase. But its latest price index added, “If demand continues to outstrip supply, we do not anticipate any significant fluctuations in new vehicle prices.”

As for when global vehicle shortages will finally be in the rearview mirror, it’s still hard to pinpoint.

“The consumer that’s looking to go to a dealership, test drive a vehicle and be able to come back two days later and have that vehicle delivered to them, that expectation is an unrealistic one still, and I’m not entirely sure we’ll ever get back to that model,” cautioned Adams.

Akyurek has this advice: “When you find a vehicle that you’re looking for, I highly recommend you pull the trigger right away.”