What do you all think of the new/used car market right now here in Canada?

[Scrape]

Just checking AutoTrader regularly and noticed that the prices have been falling.

https://www.karglobal.com/march-april-2020-kontos-kommentary-current-used-vehicle-market-conditions/

[newbiestangowner]

Just checking AutoTrader regularly and noticed that the prices have been falling.

https://www.karglobal.com/march-april-2020-kontos-kommentary-current-used-vehicle-market-conditions/

Really?? I’ve been checking once in a while:)
but the price seems to be getting higher and higher :)


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[Scrape]

Depends on what you are looking at I guess.
Really?? I’ve been checking once in a while:)
but the price seems to be getting higher and higher :)


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[Hutch]

I haven’t noticed any difference in price. I see gas has sure gone back up quickly

[92redragtop]

I think there will be good deals to be negotiated as there is "old" inventory to move that is likely financed with debt so every day on the lot costs money, and consumer demand may not come back strong initially depending on the re-hire timing and level after furloughs. Add to that the impact to the rental car industry whose demand dried up for several months and into the future (tied to rebound in travel industry which is mid to late 2021) considering they make decent money from the sale of cars versus rental revenue (which dried up and now there may be surplus inventory plus depressed consumer demand).

The drop in top line revenue from the non-essential business closures will likely affect debt covenants with lenders and may affect what they do to remedy these covenants and/or negotiations on waivers - some may choose to move volume at the expense of margin to get back on track.

The temp shutdowns and delays in new car manufacturing and supply chain issues may temper significant drops in demand/inventory/prices but I would expect lower prices or at least better offers for a while - that said, there may be certain model lines in niche categories that hold value since they're low volume relative to the general market.

But I could be wrong.....

[5.4MarkVIII]

Not sure about car lending but we have had one lender pushing for our business for a couple years now. Multiple calls. Even had a meeting where the offered the world. We said at the time we were not looking for anything but when something comes up we would call.

We called. They said no way to make it happen on the business end.

Our current personal bank on the other hand had no issue and gave us the go ahead.

[Screw]

Haven’t noticed a drop in used coyotes

[Harbinger]

Noticed new edge gts are fetching for unreasonable prices...just 3 years ago could get clean ones for 7 to 8K. Sellers now asking for 9 or higher.



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[Hutch]

Noticed new edge gts are fetching for unreasonable prices...just 3 years ago could get clean ones for 7 to 8K. Sellers now asking for 9 or higher.



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Are they actually selling for that though? I think it’s still spring time prices on those. Who will spend 11-12 on a new edge when you can get a coyote for high teens

[Harbinger]

Dont get me started on how much i overpaid for my mach 1 last year...

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[Zippy]

Don't buy a nice car because it makes sense, buy it because it's what you want.

[Zutz2v]

I think there will be good deals to be negotiated as there is "old" inventory to move that is likely financed with debt so every day on the lot costs money, and consumer demand may not come back strong initially depending on the re-hire timing and level after furloughs. Add to that the impact to the rental car industry whose demand dried up for several months and into the future (tied to rebound in travel industry which is mid to late 2021) considering they make decent money from the sale of cars versus rental revenue (which dried up and now there may be surplus inventory plus depressed consumer demand).

The drop in top line revenue from the non-essential business closures will likely affect debt covenants with lenders and may affect what they do to remedy these covenants and/or negotiations on waivers - some may choose to move volume at the expense of margin to get back on track.

The temp shutdowns and delays in new car manufacturing and supply chain issues may temper significant drops in demand/inventory/prices but I would expect lower prices or at least better offers for a while - that said, there may be certain model lines in niche categories that hold value since they're low volume relative to the general market.

But I could be wrong.....

Can you recite this in one breath like Jim Carrey in Liar Liar when he gets pulled over ?


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[92redragtop]

Probably - can easily swim a 25m pool underwater and this should take less time.

[Harbinger]

Don't buy a nice car because it makes sense, buy it because it's what you want.
I think there will be good deals to be negotiated as there is "old" inventory to move that is likely financed with debt so every day on the lot costs money, and consumer demand may not come back strong initially depending on the re-hire timing and level after furloughs. Add to that the impact to the rental car industry whose demand dried up for several months and into the future (tied to rebound in travel industry which is mid to late 2021) considering they make decent money from the sale of cars versus rental revenue (which dried up and now there may be surplus inventory plus depressed consumer demand).

The drop in top line revenue from the non-essential business closures will likely affect debt covenants with lenders and may affect what they do to remedy these covenants and/or negotiations on waivers - some may choose to move volume at the expense of margin to get back on track.

The temp shutdowns and delays in new car manufacturing and supply chain issues may temper significant drops in demand/inventory/prices but I would expect lower prices or at least better offers for a while - that said, there may be certain model lines in niche categories that hold value since they're low volume relative to the general market.

But I could be wrong.....So technically the dealerships are playing in my court?

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