Used Car Prices are so High in Canada. Good Time to Sell?
Used Car Prices are so High in Canada. Good Time to Sell?
Posted on March 29, 2022
Used car prices are so high in Canada due to the Covid-19 pandemic and is still trying to adapt; while trying to navigate these uncharted waters, the market has now experienced another shockwave with the altercation in Europe.
Financial markets are treading in unknown territory
Developing nations throughout the African continent are buying used cars from all over the world. They have a fast-growing middle class that wants to own vehicles.
These buyers do not have the means to buy brand new cars, but they can afford used vehicles and are willing to pay a premium for them.
When Russia defaults on its upcoming debt payment, creditors around the world are going to stop giving out credit and reassess their risk tolerance.
This means that the days of cheap credit in developing countries may dry up, even Chinese lenders may be reluctant to issue new debt.
When the consumers in Africa do not have access to affordable credit, their demand for used cars will go down, and that will cause used car prices in Canada to drop.
Additional reasons why Canadians need to sell their used car ASAP
At first glance, you are probably thinking, how does the issues in Europe impact the domestic used car market in Canada?
Well, it does not directly impact the market, but it has a knock-on secondary effect.
If you recently filled up your car, you know that gas prices are soaring. Some say it is just the oil companies gouging consumers, but regardless of the “why,” with gas prices over two dollars a litre, Canadians are going to transition away from gasoline-powered vehicles to all-electric.
There is a shortage of these all-electric vehicles, even with their high asking price.
Canadians that do not have the financial ability to purchase these EVs are opting for more fuel-efficient used cars. If your used car is fuel-efficient, it will fetch a higher asking price, but you will need to move fast.
As the altercation in Europe continues to drag on, it will cause consumer sentiment to change.
Identifying the best places to sell your used car
With the narrow window of opportunity, you have to decide where you are going to put your used car up for sale. One platform you might consider using is Kijiji Autos, which has a substantial number of people who visit the website on a monthly basis.
You will be competing with professional and amateur sellers, so you will need to really be on your toes.
Another, simpler way to sell your used vehicle is to bring it to a local dealership. The dealership will buy the car after they have calculated the current fair market value.
Bear in mind that the dealership is buying the vehicle to resell it for a profit. This is why the dealership is not able to give you 100% of the fair market value.
Still, they will give you a very competitive offer, and you avoid all of the hassles that come with trying to sell the used car on your own.
If you’re looking to sell your car, we’d love to buy it for a great price! Simply fill in the form below and we’ll get back to you ASAP!
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