How has the auto market been doing since the beginning of the year, when the price of new and used vehicles had increased during the pandemic? The columnist Antoine Joubert answers our questions.
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The used vehicle market experienced an unexpected resurgence in popularity with consumers, as the supply of new vehicles in car dealerships dwindled.
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For consumers who wanted to dispose of their vehicle, some might sell it for more than the initial purchase price.
Even today, demand remains strong for certain types of vehicles… so there is no lull there.
“Absolutely not [de retour à la normale] There are vehicles that are difficult to sell […] from the moment we talk regarding coveted cars, SUVs that are in high demand, that are fuel efficient or anything called hybrid or electric […] there are waiting times, there is escalation”, underlines Antoine Joubert, in an interview on the program “Le Québec matin week-end”.
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Supply chains are still feeling the problem of shortages of chips to manufacture cars, which has implications for deliveries of vehicles to dealerships.
Although the situation is improving, retailers fear that they may once more experience a slowdown in deliveries for the coveted models.
“We will not find an inventory as we already knew three, four years ago […] we are able to have a little more inventory than last year, but once more, it all depends on the model,” he recalled.
Automakers, like Ford, have to deal with customer preferences. “An F-150 is pretty easy […] because we make it by the ton, but […] a Maverick pickup truck, you’re going to have a six-month, one-year waiting period.”
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The profit margin generated by the sale of these two products differs, he explains. “There are a lot of profits [avec un F-150] […] profit is not there [avec la camionnette Maverick]».
He adds that Ford prefers to sell the Maverick model in priority on the American market.
Fans of electric vehicles will have to be patient before receiving their next car.
Questioned by our journalist Frédérique Guay on the identity of the car manufacturer with the longest waiting lists, Antoine Joubert offers a nuanced answer.
“The longest waiting list will be at Hyundai with the IONIQ-5, at KIA with the EV-6, at Chevrolet with the small electric Bolt, Toyota with the RAV4 Prime.”
Toyota RAV4 | AFP
The “completely crazy” lead times might drop, only if manufacturers substantially increase their production.
Remember that waiting times can reach three years.
*Watch the full interview with Antoine Joubert in the video above*
