It's been a little while since my last post. I've been very busy over the past two weeks and I haven't been able to drop a post.
I have been paying attention to the industry and what a two weeks it has been! I can't believe the dollar has surged as high as 1.10 This has dramatically changed consumer behaviour in Canada, especially when it comes to cars. Since roughly 89% of shoppers turn to the web before venturing into a dealership, most have heard about the huge discrepency between Canada and US vehicle pricing. Manufacturers seem to be going against the free trade agreement and blocking the purchase of new vehicles from US dealers. Others are imposing severe import restrctions that effectively act as a tariff. I'm unsure how this will all play out. I do not that consumers are holding off on purchasing new vehicles as a result. With a price differental now in the neighbourhood of 30-40% on a new vehicle, and as much as 50% on used, most are waiting for incentives. The biggest hurdle to buying US is that the vehicles cannot be financed. The purchase must be made cash, through an intermediary and financed or financed using a credit line. This eliminates a ton of buyers but doesn't change their perception. Knowing that they may be paying 30% more than the guy next store is a major deterrent. There are significantly more used cars being imported from the US. Restrictions are lax and prices are good. Our network of lenders have access to these vehicles so act quick!
