After real estate flips, it’s time for auto flips! The price of used cars is rising dramatically, and more and more owners are benefiting from it!
I’ve heard a lot about it, a new car loses about 30% of its value when it leaves the dealer’s parking lot. Well, forget it! These days, your racing car represents a more profitable investment than the stock market.
QMI Agency, Pascal Levesque
Dennis Locklear. ALBI President Le Géant
“An SUV like a KIA Telluride that comes out of the dealership will go up 5% to 10%,” ALBI le Géant president, Denis Leclerc, quoted me as an example. At a time when spare parts and vehicle shortages prevail, a return to normal is not for tomorrow. “With supply chain issues, we expect disruptions for another year or two.”
Forget consuming a new car! It is now increasing in value week by week. It also has an effect on used vehicles. According to specialist Canadian Black Book, it has increased in value by nearly 50% over the past year.
Allow me to share a personal experience. In winter 2020, I rented a new sport utility vehicle (SUV). Without specifying the brand, it was a base model, one of the most affordable brands.
To my surprise, a year later I received an offer that I could not refuse. The dealer was offering to buy back my car for nearly $10,000 more than I paid for it!
In short, I estimate I’ve made more than 20% return on my SUV, if I subtract maintenance-related expenses, like changing the oil and tires. Even calculating the price of gasoline has made financial gains!
So I took advantage of this cash grab to rent a new car with a down payment that enabled me to reduce my monthly bill by 30%. no thing!
Presumably I’m not the only one who sniffed the deal. More and more buyers are keeping cars in order to make resale profits.
For example, new 2022 Hyundai Ioniq 5 or Ford F-150 models are listed on resale sites for $10,000 to $20,000 more than the dealer price. And buyers appear quickly to get their hands on it.
If we are witnessing such excess heat, it is because the shortage of new compounds is reaching unprecedented levels.
“No one has heard of him,” confirms ALBI CEO le Géant. A Mazda dealer usually displays 150 cars in the showroom. We have 15 at the moment. »
More than ever, dealers are on the alert to avoid selling new cars to speculators who only hope for one thing: to make a profit.
“We’re asking more questions,” Dennis Leclerc confirmed.
Some buyers even come from the United States to buy cars and resell them at a high price to our neighbors in the south, where the shortage is more acute than here. This new phenomenon contributes to higher prices.
Between restrictions in China affecting a major exporter of auto parts, and the supply chains tested by Russia’s invasion of Ukraine, a return to normal is not anytime soon.
The situation is so insane that many manufacturers intend to ban the resale of their cars altogether.
Noting the great popularity of the F-150 Lightning electric truck, and the low quantity of copies, Ford introduced a no-resale clause during the first year. So the owner may face legal action if he sells his truck in the flea market.
Who would have thought, one day, that a new car would become a better investment than investing in the stock market? However, this is the reality of our time!