|
Fleet Acquisition Woes
September 29, 2022
One thing that fleets have in common right now, both North and South of the border, is the struggle to acquire vehicles. This challenge applies to new or used, Internal Combustion Engine (ICE) or Electric Vehicles (EV) and is expected to continue through 2023.
|
|
The shortages are attributed to a ‘perfect storm’ of factors that cut supply as demand increased.
- Supply initially retracted during COVID-19 as organizations stopped regular activities
- Manufacturers, including those of microchips, shifted their production to support industries that were expanding, e.g. personal entertainment
- Demand for vehicles rebounded quite quickly, while supply has not
|
|
|
Paying a premium price for replacements may be offset by higher resale values and lower maintenance costs.
Kate Vigneau, Director (Fleet & Canada) for Matrix Consulting Group
|
|
Vehicle Production
Canada produced ~2.2 million light-duty vehicles annually from 2009-2019. In 2020 and 2021, this number dropped to 1.4 million and 1.2 million.
Prices - 2021 vs 2022
- New vehicle prices were up 12% from January 2021 to January 2022
- Used vehicle prices were up over 40%
- More than 82% of consumers paid over sticker value compared to less than 3% in the previous year.
Sustainability
In Canada, a 2020/2021 ZEV Availability Report shows EV options have increased, but more than half the dealers have no inventory.
|
|
We provide full fleet management services to commercial fleets in North America. Our agility, drive, and creativity delivers vehicles to our customers!
- Work Truck & Van Rentals
- Leasing with flexible payment options
- Telematics
- Fleet Card for fuel and maintenance
- and more
|
|
|
Give us a call. We'd love to hear from you!
|
|
|
|
|
