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Article from CBC discussing current state of car sales in Canada
Canadian car glut a buyer's bonanza
Last Updated Tue, 08 Jul 2003 14:04:07
OTTAWA - Buying a new car this summer could be easier for Canadians because dealers say they have too many vehicles and too few customers.
From factory lots in Windsor to dealerships in Vancouver, there's a glut of new cars that can't find a home.
The latest U.S. inventory levels, released in May, reveal manufacturers had 67-day supply of vehicles. That's 17 per cent higher than the historical average for that month.
European brands such as Porsche and BMW have fared the worst — their inventory was 47 per cent higher than average.
"That means the factories could shut down for a full two, maybe three weeks and not produce anything," predicts Dennis DesRosiers, an automotive consultant. "We could still have plenty of vehicles to sell."
Manufacturers are now desperate to get rid of what they can. General Motors is offering bigger incentives while Ford has cut production.
Economists say there was $8 billion worth of unsold vehicles in Canada in the first quarter. That inventory has to be cut back.
Analysts say it could take another two years for vehicle sales to rebound. For consumers wanting to purchase a new car, this means deep discounts for awhile.
Interesting to see Porsche and BMW being the worst maybe some deals to be had on cars you actually want. I was by Glenmore Audi on the weekend and they have 10 Porsche Cayennes on there lot even.
Canadian car glut a buyer's bonanza
Last Updated Tue, 08 Jul 2003 14:04:07
OTTAWA - Buying a new car this summer could be easier for Canadians because dealers say they have too many vehicles and too few customers.
From factory lots in Windsor to dealerships in Vancouver, there's a glut of new cars that can't find a home.
The latest U.S. inventory levels, released in May, reveal manufacturers had 67-day supply of vehicles. That's 17 per cent higher than the historical average for that month.
European brands such as Porsche and BMW have fared the worst — their inventory was 47 per cent higher than average.
"That means the factories could shut down for a full two, maybe three weeks and not produce anything," predicts Dennis DesRosiers, an automotive consultant. "We could still have plenty of vehicles to sell."
Manufacturers are now desperate to get rid of what they can. General Motors is offering bigger incentives while Ford has cut production.
Economists say there was $8 billion worth of unsold vehicles in Canada in the first quarter. That inventory has to be cut back.
Analysts say it could take another two years for vehicle sales to rebound. For consumers wanting to purchase a new car, this means deep discounts for awhile.
Interesting to see Porsche and BMW being the worst maybe some deals to be had on cars you actually want. I was by Glenmore Audi on the weekend and they have 10 Porsche Cayennes on there lot even.
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