Some new car dealers resorting to Kijiji to fill their lots

The frustrating quest for a new or used car continues into 2022, and new COVID-19 restrictions are not making it any easier.

Many new vehicle dealerships in southwestern Ontario appear empty or feature a high amount of used products over new ones.

“I never thought in my life I would see these types of things where our lot would be empty," states Scott Cowen of Larry MacDonald Chevrolet.

As general manager of the Strathroy-based dealership, he acknowledges the continuing struggle for both vehicle buyers and sellers.

Optics are a significant challenge for Cowen.Scott Cowen speaks to CTV News, Jan. 7, 2022. (Sean Irvine / CTV News)
“Typically, we have probably about 150 vehicles on our lot and now we basically have nothing. I mean we got a truckload in last night of six new vehicles and every one of them is sold.”On the used car side, dealers are taking a different, and at times, dramatic approach.

Jordan Wurfel of Dale Wurfel Chrysler-Dodge-Jeep-Ram tells CTV News London his experience. His sales team are purchasing used cars directly from private buyers on Kijiji and elsewhere since last summer.

It’s an action never considered before the pandemic.

“I’m not surprised at all," states Andrew King of DesRosiers Auto Consultants, in an email to CTV News London. King was unavailable Friday for further comment.

Yet for the most part, Cowen says his dealership has chosen not to buy cars from private sellers to keep the lot full.

He cites inflated prices for used cars, caused by high demand in the U.S., as the reason.

“The problem that we have is, what happens, say a year down the road when hopefully things get better, and customers have perhaps overpaid for the used cars. They’re going to be in a situation where perhaps it might be not favourable for them to get into something new,” said Cowen.

With dealers still struggling for inventory, what options are available for a new or used car buyer in 2022?

Cowen says new vehicles, depending on the type, can be ordered. Pick-up trucks are generally the easiest to secure, SUVs are challenging.Dale Wurfel Chrysler-Dodge-Jeep-Ram (Source: Dale Wurfel) The ongoing vehicle computer chip shortage and the pandemic are not helping.

Pricing on the new car remains fair Cowen contends, yet manufacturers' rebates are few.“Incentives are not as good as they were in 2019. I guess it is the old supply and demand philosophy,” he said.

On the used car side, Cowen says his dealership will work with customers in immediate need of a pre-owned vehicle.

Wurfel has a waiting supply.

With current restrictions dealerships are taking customer appointments, another struggle for the hard-hit industry.

Despite all the challenges, Cowen and some industry analysts expect vehicle shortages to ease as 2022 progresses.