A newly released report by Convergent Labs (co-authored by Murtaza Haider) analyzes the impact of COVID-19 on motor vehicle sales in Canada. The report finds that the large and sudden decline in motor vehicle sales observed earlier in March and April has given way to a resurgence in sales in May. Industry statistics suggest a stronger than expected sales in June and beyond. The pent-up demand resulting from the lockdown in March, and restrictions on mobility and assembly later have resulted in unmet demand for new and used motor vehicles. The current market conditions suggest a dearth of supply in the used car market, thus creating market conditions that favour sellers. The report expects user car supply to improve later in the Fall, providing more choice to buyers with an expected impact on prices.
To access the report, please CLICK HERE.