"In August 2019, before the pandemic, the average price for a used vehicle in Canada was $25,841. In August of 2021 the average price for a used vehicle jumped to $29,376, that's a 14 percent increase," said Lai. Besides the microchip shortage, Layne points to COVID-19 as another factor driving up the cost of used cars. She predicts the high demand for used cars will continue for "quite a while". Layne also says that the combination of used cars selling well and fewer trade ins has also led to a reduced inventory of used vehicles to go around.

Source: CBC News September 29, 2021 18:30 UTC