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Topic: inventory

CarGurus Canada Vehicle Availability Index & Insights – November 2021

Posted by Kevin Roberts on December 3, 2021

November saw a continuation of trends from last month in Canada, with inventory continuing to decline, prices rising, and days on market shrinking. Inventory decline was at a more modest rate of 0.6% from October for new, however, inventory levels are down 50.9% year-over-year. Used also saw declines in inventory but at a slightly higher clip of 2.1%.

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Topics: CarGurus data, inventory, new vehicles, trends, used vehicles

Tips for staying on top of your game amid the supply chain crisis

Posted by Meg Bernazzani on November 30, 2021

The stories are similar across the country: lots are sitting empty, features are being deleted to secure inventory, and there are even reports of customers following vehicle transport trucks down the street to see if theirs are on it. We’re living in an unprecedented time amid one of the most bizarre supply chain crises the automotive industry has ever seen.

And the expected hit to the number is staggering. The semiconductor and microchip shortages and global supply chain woes are expected to cost the industry more than $200 billion worldwide before it’s over, which could take many more months. In Canada alone, sales have been down by double-digit percentages for the past three months: 11.4% in August, 19.6% in September, and 17.7% in October.

The good news, if it can be considered as such, is that the chips that are available are being reserved for higher-margin vehicles, and those are moving quickly when they do arrive. According to the CarGurus Vehicle Availability Index & Insights report, new days-on-market was down 10.3% from September and down 27% year-over-year while used days-on-market dropped 6.4% from September. The decrease in days-on-market is impacting vehicle prices as well. The average new vehicle listing price was up 9.3% from September and 17.7% year-over-year. Similarly, the average used vehicle listing price was up 4.2% from September and 31.4% year-over-year.

Ultimately, this means the few vehicles that are arriving are quickly turning a solid profit. Whatever strategies your dealership is using to manage the situation, there may be other ideas out there you haven’t considered. Here are some tips to help you make the most of the current situation and stay on top of the game.

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Topics: chip shortage, inventory, supply

Introducing the CarGurus Canada Vehicle Availability Index & Insights report

Posted by Kevin Roberts on November 10, 2021

As vehicle availability continues to challenge both dealers and car buyers, CarGurus is happy to introduce a new monthly report from our Director of Industry Insights & Analytics, Kevin Roberts. The Canada Vehicle Availability Index & Insights report will deliver his in-depth research and outlook for the coming months.

The ongoing global supply chain shortage has caused acute pain to the automotive industry which is being felt in both the new and used vehicle markets. The lack of vehicle production has led to a reduction in the number of new vehicles, which has then had a trickle-down impact on used vehicles as well.

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Topics: CarGurus data, industry insights, inventory, trends

Stocking your lot during the pandemic will take some creativity

Posted by Ashley Karr on November 5, 2020

Inventory acquisition has long been a pain point for dealers. It requires a combination of data, precedent, and dealer’s intuition to keep a lot stocked with in-demand vehicles that will move. And that’s before you consider other factors that fluctuate like changing consumer behavior, economic trends, and unanticipated events that affect supply and demand.

Dealers have been weathering changes and adapting their strategies for decades. However, the Covid-19 pandemic has had an unprecedented impact on the industry—particularly, on supply. It’s led to auctions moving online, manufacturing plants being shut down by OEMs, lease extensions, and an overall shift in consumers’ preferences. Together, these variables have added up to a shortage of quality new and used vehicles unlike ever before.

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Topics: covid-19, industry insights, inventory