Is the vehicle-affordability problem in Canada — some have called it a crisis — solving itself? If you believe vehicles are a commodity, and subject to the pressures of supply and demand, the answer might be yes.
Logically, then, when automakers get into an overbuild situation — demand is either satisfied or falling — prices adjust downward. It can be a little or a lot, and that can happen with cash incentives, reduced interest rates, lower vehicle prices or a combination of those tactics. Jeep sales were down 12.2 per cent for the quarter. Is it coincidence that we’ve seen Jeep Wrangler Unlimiteds being offered for lease at 89 bucks a week plus tax and $2,500 down? No it isn’t. Dealers need to move metal that’s costing more to keep around, thanks to high interest rates.
There have certainly been signs of this with recent price cuts for Tesla vehicles and the Ford Mustang Mach-E, the latter of which, we’re told by dealers, is languishing on lots.