Cost of Living 7:36 The return of car deals Over the last three years, new and used vehicle supply in Canada dried up — and so did the deals on car sales. But industry experts say the drought is over and Canadians can expect a better buying experience this summer and fall. "Supply of new vehicles has improved dramatically over the past year and the shortages seen in 2021-23 are to all extents over," wrote Andrew King, managing partner at DesRosiers Automotive Consultants in Richmond Hill, Ont.
, in an email. "Prices are moderating" and consumers are seeing the "return of vehicle incentives," he said. Applewood Nissan in Richmond, B.
C., is offering deals they haven't had in years, such as price cuts, rebates and lower financing rates. "We already have zero per cent [financing] on some models.
They're not at full capacity, but the deals are coming back," said general manager Leon Cheliadin. Leon Cheliadin, general manager of Applewood Nissan in Richmond, B.C.
, says "the deals are coming back." (Submitted by Applewood Nissan Richmond) Subvented loans So how can a car dealership offer financing well below the Bank of Canada's 4.75 per cent key interest rate? It's called a subvented loan.
If a new vehicle model isn't selling as well as expected, manufacturers may subsidize the cost of borrowing to move more units. "Three months ago we had a few too many Nissan Rogues," said Cheliadin. "Then Nissan came up with a low-interest lease and we sold about 30 in one month of that particu.