From microchip shortages to volatile demand to supply chain issues — Canada’s auto sector has been through a lot the last few years. Scotiabank Economist Laura Gu is our guest this episode. She’ll answer our questions about why used car prices are up over 50% from pre-pandemic levels, the rental market and catch us up on the state of Canada’s auto sector.

Key moments this episode:

0:58 — Quick summary of the rollercoaster ride over the last few years in the Canadian auto market

1:50 — Used car prices now vs pre-pandemic

2:25 — Are people still having to wait to get new vehicles?

3:09 — Microchip shortage 101

4:42 — What is just-in-time inventory and why is it used?

5:00 — What other factors are affecting supply and is that changing?

5:40 — What has all of this meant for vehicle prices?

6:18 — Why have used car prices gone up so much compared to new car prices?

7:42 — Rental car prices

8:42 — How healthy is Ontario’s auto industry?

10:03 — Where do we go from here? Will the price of vehicles come down again?

The driving forces behind vehicle prices and shortages