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As Canada’s used car market currently appears strong, industry experts warn that this may soon change due to a likely slowdown in vehicle availability.

At Gary Shea’s dealership in Lower Sackville, Nova Scotia, sales remain brisk, with around 100 vehicles sold each month. However, Shea and others in the industry are observing early signs of potential shortages in the coming months.

Petrina Gentile, an automotive journalist, points to the effects of the COVID-19 pandemic as a key factor in the anticipated slowdown.

“During the pandemic, supply issues limited the availability of new cars,” she explained. “Fewer vehicles were manufactured and sold, and now that shortage is impacting the flow of used cars into the market.”

Adding to this shift, consumers are increasingly opting for new vehicles over used ones. Susan Johnston, Vice President of Marketing at O’Regan’s dealership, highlighted a trend towards payment plans and long-term leases.

“A significant segment of the market comprises payment buyers who are now more inclined to lease a new car rather than purchase a used one,” Johnston said.

She added that the popularity of seven- and eight-year lease terms is also resulting in drivers holding onto their cars longer, further tightening the used car inventory.

With these supply pressures mounting, Gentile advises used car shoppers to act strategically. She recommends thorough research and encourages buyers to seize opportunities if they find a suitable vehicle at a fair price.

“If you see a vehicle you like and the price seems right, it’s wise to consider purchasing it now to avoid the risk of future shortages and price increases,” Gentile noted.

As the Canadian market braces for potential inventory constraints, consumers can still navigate the challenges ahead by remaining vigilant and prepared to make timely decisions.