The hassle of changing cars goes up a gear

Buying a new car has become very complicated. Above all, it requires patience, a lot of patience. And that’s not regarding to change.

Yes, there are gleaming models at the dealerships, but to leave immediately with them? Unthinkable! Deliveries are long overdue, they arrive in dribs and drabs.

Motorists who want a personalized vehicle (choosing the color, the material of the seats and the options, etc.), tailor-made in short, must pre-order it.

Before, it took three months. Today is much longer“says Robert Poëti, President and CEO of the Corporation of Quebec Automobile Dealers (CCAQ).

Up to two years of waiting

Longer how much? I have two people this week who called me to say they were going to have their vehicle ordered in a year“, he continues. And it is not surprising, even it can take much longer.

Benoit Charette, editor-in-chief of The Automotive Annualaffirm that for a Toyota Rav4 Prime, there are two years of waiting“. Which leaves him dumbfounded.

It doesn’t make sense to wait two years. Someone who wants a car in 2022, he doesn’t want to buy it in 2024. He wants it because he needs it right now.»

© Rose St-Pierre/Radio-Canada
Benoit Charette is also a car columnist.

How did we arrive at this scenario which features manufacturers failing to meet demand? The pandemic of course, but not only…

Blame it on the fleas

At the rate of the confinements, the production lines in the factories were brought to a halt. Anticipating a drop in activity, manufacturers have suspended their orders for microprocessors, these famous electronic chips which are now as numerous as they are invisible in the engine and the passenger compartment.

Front or rear obstacle detection system, anti-skid, airbags… There are more electronic chips in your vehicle than in an F18», stresses Robert Poëti.

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Robert Poëti recognizes that dealers have fewer models in inventory than before the pandemic.

However, manufacturers of microprocessors have not stopped selling. They just sold their wares to other industries. From televisions to game consoles, including household appliances, they were spoiled for choice.

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At the same time and to avoid the slowdown on the sales side, car manufacturers and dealers have offered very advantageous financing conditions.

So much so that consumers might afford to buy new vehicles“, reports Yan Cimon, professor of strategies at the Faculty of Administration Sciences at Laval University.

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Yan Cimon, from Laval University, thinks that with inflation, vehicle financing conditions will become less advantageous. Interest rates in particular are likely to rise.

COVID-19 and the emergence of telework have convinced some people to leave the city to settle in the countryside where the means of public transport are not comparable. Whether out of desire or out of necessity, the demand for new cars has continued.

In order to pick up the pace, manufacturers have reordered their microprocessor suppliers, but they are no longer a priority.

Many studies and analyzes converge towards 2024 for a return to normal in automotive production volumes», announces Yan Cimon.

Soaring prices

This particular context is reflected in the second-hand market. Buyers turn to used models, since they are unable to obtain a new one.

Honestly, we don’t keep our used vehicles for long.“, confides the CEO of the CCAQ.

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Despite the pandemic and supply difficulties, car sales are not running out of steam.

In turn, they are becoming scarce and this is reflected in prices. Benoit Charette reveals that since 2020, they have increased by 34.5%.

It’s huge, it’s the third! In fact, people who have 2018 or 2019 vehicles, with low mileage and in good condition, can resell them in 2022 at the same price they paid for them.Which makes him say: This is the perfect time to sell a used vehicle on the market.»

For those who want or need to buy a car, Yan Cimon advises to keep a cool head».

It is important to properly assess your needs and not be afraid to use all the tools at your disposal to try to find the best possible price. What the Internet allows you to do now.»