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Canada is known for a quite a few things, noteworthy of these being the Niagara Falls, Banff National Park and The Notre Dame Basilica. These have all received major global attention and acclaim. But there’s another major attraction that’s beginning to emerge in Canada, it’s booming user car market.
Americans in particular find it extremely advantageous to buy a car from Canada, a country that has a weaker currency yet a better used car market. It’s important to understand why a country with weaker currency than the US is able to offer better deals on used cars.
One major reason that’s shifting the power from used car dealers to dealers is that there are lots of online tools that provide better data and intelligence on the fair value of cars. This way used car buyers can make a better decision on whether they’re getting a good or bad deal.
Used car buyers can easily find a pre-owned car in the city of Toronto by going online and searching for the make and model of the car they desire.
As of October 2018, eBay was the biggest online marketplace for used vehicles, with 500,000 listings, followed closely by Autotrader, which had 444,000 listings.
With new vehicle sales expected to be largely flat, the used vehicle market is making up for the shortage in overall vehicle sales. People still want to own or upgrade their cars, but with the economy slowing down and the diminishing value of the Canadian Dollar, used cars present an excellent value.
Back in 2018, there were 3 million used car sales in Canada compared to 2 million new car sales. And the number of used cars sold is expected to grow dramatically over the next few years.
The rise of the used car market can also be attributed to car technology largely hitting a plateau in recent years. Cars made in the past 5 years are all exceedingly reliable, and have all the safety features that most car buyers look for.
New cars simply don’t make much sense when older cars with largely the same technology are available at bargain prices.
The quality and reliability of cars has also been improving in recent years, so people are more reluctant selling cars that run just as well as when they left the showroom floor.
It’s estimated that it takes roughly 23 years to remove vehicles from the road now, compared to just 12 years a decade ago.
What’s more, these days used car buyers aren’t at the mercy of used car dealers. Online used car marketplaces have made this process much less riskier, as there are various buyer protection policies in place.
The popularity of online used car sales has also forced used car dealers to be more transparent, as well as being more competitive by offering better prices.
Dealers actually have to make a case for why they’re selling the same car model with the same number of miles for $500 more, compared to a seller on an online marketplace.
The whole process has just become more customer friendly, where used car buyers have all the power. Used car buyers these days also have access to detailed vehicle crash reports, price compare tools and so on.
With so much information at hand, used car buyers are more empowered than ever to make a better purchase with a price they’re comfortable paying.
There’s another side to this story - Americans are now flocking to Canada to secure great deals on used cars. Why? The answer is simple. The Canadian Dollar is weaker compared to the US Dollar, and yet the Canadian used car market has better deals. For Americans, it’s a win-win situation.
The Candian used car market keeps better every year because it has a very strong foundation. With so many used cars on the road, the used car economy is only going to thrive even further. Consider this, there are more used car-related sales taking place than new cars, and as a result the used car market is booming.
And because it’s become such a competitive market, every used car seller is trying to offer the best price, which is a major win for used car buyers. This is keeping the prices fair and low, while propelling the used car economy even further.
It’s a great time to buy a used car in Canada, simply because there are so many great deals to be had!