Vehicle availability increasing at Medicine Hat dealerships helping stabilize prices

Scott Warwyk, a managing partner at Medicine Hat Nissan said the industry has started to stabilize.

“You’re starting to see more inventory on the ground rather than waiting for inventory to come or having to place an order and wait for 12, 16, 18 months, which is helping things out,” Warwyk said.

“It’s helping stabilize pricing a little bit, and obviously with the Bank of Canada rate actually being a little bit stable over the last little while, it’s helped interest rates stabilize as well,” he added.

“[Dealership] interest rates definitely have come down since kind of the peak, I guess, a few months ago, which is nice.”

The expected time frame on new orders is falling more into the normal three to four month range.

Warren Klein, dealer principal at City Chrysler said less vehicles are heading south of the border increasing the availability of used vehicles, which is starting to bring used vehicle prices back down.

“Same with new cars, you know, the lots are full now and the manufacturers are now putting more rebates and incentives all the time,” Klein said.

“We saw price increases, but now we’re seeing the incentives bringing those prices back down again.”

Klein also feels the pricing structure has become more affordable again with inventory no longer as limited.

“Now that kind of pressure is gone,” Klein said.

“It’s made it much more affordable for the consumer.”

Wawryk says the chip shortage that once limited a lot of vehicle options isn’t as much of a factor.

“It’s really starting to dwindle down,” Wawryk said.

“There is still a few items and there’s still some parts that definitely take a bit longer to get here. Anything that has a chip, there’s still the possibility that it could take a little bit longer,” he added.

“For the most part, the manufacturers have done a pretty good job of stabilizing that as well, which is nice.”

Klein said chip shortages aren’t really a factor anymore at City Chrysler.

The Alberta government during their budget introduced a $200 annual tax for the owners of electric vehicles starting in 2025, since those drivers aren’t paying a fuel tax at the pump.

Klein feels that as the shift towards electric vehicles becomes more common it will eventually create a greater demand for vehicles with an internal combustion engine.

“They’re going to be harder and harder to get,” Klein said.

“If people don’t want to go the electric avenue, then there’s going to be pressure put on them,” he added.

“We’re seeing a decrease in prices with better manufacturer rebates right now. But I think that may change as the electric side comes in.”

City Chrysler and Medicine Hat Nissan both aren’t currently electric vehicle dealers.

“There’s a lot of infrastructure that needs to come first before we go full electric,” Wawryk said.

“I think consumers are starting to see that now, as time goes on ranges will get a little bit better, the technology is obviously getting better,” he added.

“There’s probably going to be a middle ground where you’re going to see hybrids more than anything, for the first little bit and then that full transition to electric might be able to happen a little bit easier.”

The outlook for consumers to be able to more easily find a vehicle to suit their needs has improved.

The rising availability also suggests that this year will be the most affordable of the past few years to purchase a new vehicle.

by Jesse Gill

Vehicle availability increasing at Medicine Hat dealerships helping stabilize prices

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