Car dealers optimistic supply of new vehicles will come this spring

Amid a shortage of new cars on P.E.I. throughout the COVID-19 pandemic, some P.E.I. car dealers say they are being told by manufacturers that supplies and inventory should start to level out come March or April.

"It's still early for inventory predictions for the calendar year, but I would say things are more positive than they were in 2021," said P.E.I. Automobile Dealers Association (PEIADA) executive director Lisa Doyle-MacBain.

However, some Islanders have already taken their own measures in order to adapt to the lingering supply chain delays.

Kensington resident Gordon Coffin has been reluctantly driving his convertible in the middle of winter while awaiting the year-round four-by-four he ordered in September.

"I'm not going to put winter tires on a convertible, OK," said Coffin. "It's not what I should be driving."

For the last few years, he drove a four-by-four truck ideal for withstanding harsh winters, but he said he wanted to downsize and also obtain a new hybrid vehicle.

Coffin was hopeful it would arrive before winter. But due to the delay, his only option is to be extremely careful where he goes with his car.

Despite noticing the low inventory at the Summerside car lots he's driven past, Coffin said he knows others who have gotten their orders on time.

"My dealer was very upfront with me and says, 'We are experiencing supply chain issues,'" said Coffin.

"Christmas has come and gone and the dealer has been responsive, but apparently there's not a thing that the dealer can do."

Incentives

Doyle-MacBain said manufacturers typically give more incentives for past year models that dealerships normally receive in the first quarter of the following year, which means buyers can get a combination of lower prices, cash back or low financing rates.

"Customers are being very understanding and patient and they're prepared to wait for their factory orders, and sometimes it's up to six months," said Doyle-MacBain.

For those waiting on their cars, Doyle-MacBain said vehicles ordered in 2021 but arriving in 2022 will continue to hold their value.

She recommends anyone in the market for a vehicle speak directly with local dealerships for availability information as inventory levels depend on the manufacturer and brand.

Doyle-MacBain said the used vehicle market is still hot, with predictions that this will continue for the next couple of years, and it is good news for people looking to trade or sell.

Allison Smith, owner of Allison's Auto Sales in South Freetown, has kept his used car dealership running for 14 years as a part-time job along with two other side gigs: running an apartment complex and a farm.

But the domino effect from supply chain issues has forced him to increase his hours by working overtime seven days a week.

"Now I've got three full-time jobs to try and keep it rolling so that when things do come back to normal, [I] still have a business to go back to," he said.

Smith said the lack of availability for new cars has moved U.S. buyers into his market, making it difficult to compete against the higher exchange rate.

"What I used to make on a vehicle before the pandemic, you're down to a quarter… because it just costs so much more now to do everything," he said.

Another challenge is getting cars transported into the province from auctions in Moncton, N.B., because truckers who have worked with him in the past don't want to self-isolate.

Smith recently bought three trucks from Newfoundland and Labrador but he expects delays of up to three or four weeks, which he said is longer than the usual weeklong turnaround.