Here's what buyers should know before making a used car purchase in Canada

Used vehicles for sale are displayed at an automotive dealership in Ottawa on Friday, Aug. 11, 2023. THE CANADIAN PRESS/Sean Kilpatrick

Based on initial appearances, there are signs indicating the automobile industry is in healthy shape – for now.

Gary Shea’s Lower Sackville, N.S. used car dealership is crammed with vehicles in the parking lot, and sells roughly 100 cars each month.

"There are a ton of cars for sale and the lots are full, everywhere,” said Shea.

However, concerns are growing that there soon could be an inventory shortage in Canada's used car market.

"And that is simply because during COVID, there were supply issues with new cars,” said automotive journalist Petrina Gentile. “Fewer vehicles were available and sold. That means when you have fewer new vehicles, you will have fewer used vehicles coming to the market."

Post-pandemic, consumers are also changing their spending habits. Rather than purchasing a used car, they are exploring options that get them behind the wheel of the new vehicle.

"We have a large percentage of the market that are payment buyers,” said O’Regan’s dealership marketing VP Susan Johnston. “We are finding people saying, 'well, I think I'll just lease that new car.'"

They are also signing on for longer-term leasing agreements.

"Seven, eight-year terms, which means more people are holding onto the new cars and there are less vehicles coming to the used market,” said Gentile.

According to Gentile, with a possible inventory slow-down about to hit the automotive marketplace, there are some basic strategies consumers can deploy.

For starters, car-buyers need to do their homework. The more they shop, the more cars they will see and be best prepared to make a measured decision and maybe even find a good deal.

"If you see a vehicle that you really like, and the price is right, you are probably better off buying that vehicle now and having a peace of mind,” said Gentile, who added, if people wait to make a purchase, they may be forced to pay more because soon, fewer cars could be available.