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This is Why Used Car Prices will Drop in Canada

This is Why Used Car Prices will Drop in Canada

It seems that everywhere you look on television, at least mainstream TV, is news about the conflict in Europe. But, even if you wanted to ignore the news, we live in a global economy, and what happens in Europe directly impacts our domestic markets. We are going to take a look at a few of the driving factors why used car prices will drop soon in Canada.

 

Now is the time to sell your used car

 

Some Canadians were trying to time the used car market to determine the best time to sell a used car.

 

It appears that the time is now, at least if you want to get a competitive offer on your vehicle.

 

Cheap credit is drying up fast

 

During the peak of the pandemic, central banks lowered interest rates and used quantitative easing to increase the money supply; this kept the economy alive but caused massive inflation.

 

Just recently in Canada, inflation reached a high of 5.1%, which is not sustainable.

 

Central banks around the globe are now trying to put the brakes on inflation by raising interest rates. In normal times, that would work, but these are not normal times.

 

Russia has a series of bond payments that are due, and it appears that Russia will not make those payments as promised.

 

When a superpower misses a bond payment, it has a cascading effect on the global credit markets. Russia has defaulted in the past, but that was during its transition from a communist to a capitalistic monetary system.

 

 

What is being experienced is something completely unique. While the sanctions on the country should work, it is doing significant damage to the global credit markets.

 

Cheap credit and used cars, what is the connection?

 

The majority of the cars in the Canadian used car market are being purchased by international buyers.

 

These buyers borrow money, buy the used cars and have them shipped to their respective home countries; the vehicles are then sold for a profit. It made sense for these international buyers to purchase used cars from abroad with cheap credit, but that is no longer the case.

 

Once interest rates start to rise, used car prices will drop in Canada like a lead balloon.

 

How to avoid the impending drop in demand for used cars

 

There is a way you can sidestep all of these challenges and sell your used car for a competitive amount of money, but timing is key.

 

We have established that the market is poised for a substantial drop, so you will need to act fast.

 

You can bring your used car to a local dealership and have them purchase it. The dealership will buy the car.

 

They are not as sensitive to changes in the global market as the international used car buyers.

 

When you bring your used car to the dealership, they will make a serious cash offer, and if you take them up on the offer, then you walk away with cash in your pocket.

 

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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