The costs of some used automobiles are anticipated to stay excessive till 2026 as provide and demand will proceed to be rocked by shortages of new-vehicle stock, mentioned James Hancock, director of OEM technique and analytics at Canadian Black E book.

Hancock mentioned a return to regular in new-vehicle stock — hampered by COVID-19 slowdowns and microchip shortages — isn’t anticipated till the second half of 2023. With fewer new automobiles being offered, fewer used automobiles will probably be accessible in 2024, 2025 and 2026.

“Now, 2021 was the height [in used-vehicle prices], and we’ll begin to see values come down from that peak, however nonetheless stay above pre-pandemic ranges into 2026,” Hancock instructed Digital and Cell Editor Greg Layson on the Automotive Information Canada Podcast April 29.

Hancock mentioned used automobile gross sales have risen 4.1 per cent for the reason that begin of 2022, pushed by shortages in new-car provide. Nevertheless, used-vehicle costs have fallen is within the full-size crossover, SUV and pick-up truck segments. As gasoline costs skyrocketed within the fallout of Russia’s invasion of Ukraine, demand for much less fuel-efficient automobiles has dropped dramatically whereas gross sales of compact and subcompact automobiles have risen 10.1 per cent.

“To be sincere, I’ve by no means seen something like this. I’ve been within the auto world for 15 years and it’s an unimaginable time,” he mentioned. “Even through the monetary disaster, we didn’t see this type of rebound for used automotive costs.”