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Pandemic causes inventory shortage for Shuswap car dealers

The supply chains will be 91Ƶcramped for a while yet91Ƶ
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Make, model or year, it doesn91Ƶt matter; buying a vehicle in the Shuswap is not easy these days.

Like many other industries, car dealerships are having to contend with supply chain issues resulting from COVID as well as the Canadian dollar against the American.

91ƵWe finally have two new vehicles in stock that are unsold, probably the most we91Ƶve had all year,91Ƶ says Hilltop Toyota dealer Blair Reynaud. 91ƵMore than 50 people have ordered, paid a deposit and and are waiting for their vehicles.91Ƶ

Reynaud says hybrids are very much in demand, with the wait for them being anywhere from eight months to two years, depending on the model.

Like most other dealerships, he is concentrating on pre-owned inventory, the cost of which has never been higher.

91ƵWe are pretty much paying for used cars what we would have sold them for two years ago,91Ƶ he says. 91ƵAnd all used SUVs and higher-end trucks are being bought up by dealers in the U.S.91Ƶ

Reynaud says domestic dealers all have contacts with their American counterparts and get more for selling them Stateside because of the exchange rate.

91ƵIt91Ƶs been a tough go for all the car dealers,91Ƶ he says. 91ƵThe less inventory, the higher the prices, just like refrigerators or anything else.91Ƶ

Braby Motors co-owner Chris Davis says the dealership has been lucky with inventory as manufacturers have continued to produce.

91ƵAre we getting everything we want? No, but we91Ƶre getting a good selection of vehicles,91Ƶ he says. 91ƵSome of them might not have all the options, but there91Ƶs still quite good a lot of them at the high end.91Ƶ

Davis says there may be plants in Canada and Mexico but basically all cars are shipped out of the U.S.

91ƵVehicles coming across to Canada cost manufacturers more because of the dollar, so if they can sell them in the U.S., that91Ƶs what they prefer,91Ƶ he says.

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Davis believes the supply chains will be 91Ƶcramped for a while yet.91Ƶ

He says the dealership is acquiring as many used cars as possible and customers inquire about them every day.

91ƵThere has been a price adjustment in the used cars, prices have come down,91Ƶ he says. 91ƵWhat happens with that will depend on new vehicle availability over the next few months.91Ƶ

Salmon Arm GM owner Ian Gray has been in the industry for 33 years and says his is definitely more of a pre-owned car dealership than previously, and that there91Ƶs another aspect to the shortage.

91ƵGM is dealing with a shortage of rail cars, which has to do with the people they do business with for loading and unloading,91Ƶ he says, noting he is pleased to be hiring just as many people, if not more, than before, including skilled technicians. 91ƵI do know there91Ƶs some major challenges in the world and the biggest shortage is people.91Ƶ

As with most vehicle manufacturers, Gray says 95 per cent of customers order their vehicles and wait up to 16 months for their arrival because of the freight issues.

91ƵLargely our problem now is 95 per cent of people used to find what they wanted on our lot, and now it91Ƶs the other way around,91Ƶ he says, noting that by ordering and waiting, customers get what they want without compromise.

Gray began focusing on pre-owned inventory 20 months ago and says because he91Ƶs part of a dealer group, he has about 400 vehicles available.

91ƵI feel good that we can supply customers with quality pre-owned vehicles and pass savings onto them,91Ƶ he says. 91ƵWe try to live by that.91Ƶ

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