Supply chains

“We are in unprecedented territory here. There’s such a massive shortage of raw materials and labour that it’s filtering down to the car market. And because of this, we’re seeing used-car prices soar. So, this is a great time to sell a used vehicle— but only if you can get a replacement.

Affordability
A“The market has also cooled of a lot in the last couple of months because of inflation. Not very many people can afford to buy a used car with cash. And with interest rates jumping the way they are, the market is starting to level out now because nobody can afford the loan to buy the car.

Strategy
It’s a good idea for potential sellers to determine the value of their current vehicle. There are tools to monitor the market to get an idea, like the Canadian Black Book. “Just because it’s worth X number of dollars today doesn’t mean in a month or two it will be worth the same amount. It can be higher, it can be lower. For now, just hold on to it; keep it repaired and in good shape because we don’t know when prices are going to return to a reasonable amount.” To calculate the cost of continuing to drive your vehicle, visit carcosts.caa.ca.