Posted October 03, 2018 11:27:00 Auctioneers at the Richmond Auto Auction in Richmond, Virginia, have sold off a record $6 million in auto auctions during the month of October, making it the largest in Canadian history.

“It’s a record,” said auctioneer Steve Houser.

“We’re getting some really big names out there.

I’d say this is a really good day for the automotive industry.”

The average price of a vehicle sold in the month is now $7,200, a five per cent increase from last month.

That is more than the $6,000 average price in October 2015, when an average of $637,200 was sold in Canada.

The average of 1,097 vehicles sold in November was $1,823,000, an increase of almost $100,000 over October.

“This is going to be a good day.

It’s going to make a lot of money,” said Housher.

The first three months of the year were dominated by the high end of the market, with the highest-priced vehicles on the block in the $9,000-plus range.

In October, a total of 1.6 million vehicles were sold in Ontario, followed by British Columbia, Alberta, and Saskatchewan.

“I think what we’ve seen is that Canadians are taking their time,” said John Schmitt, executive director of the Canadian Automotive Dealers Association.

“The amount of inventory has been falling, the number of vehicles on offer has been decreasing.”

The industry also saw a drop in the number who were able to get into the auction, from a peak of 5,000 vehicles in November 2015 to about 2,500 this year.

“In the last two months, it’s become less of a priority to get a vehicle in the hands of the public,” said Schmitt.

The Canadian Auto Dealers’ Association also attributed the low number of people at the auctions to a recent ban on people with more than two passports on the books.

“These days, it makes sense to do a lot more in a shorter period of time,” Schmitt said.

“You’re looking at fewer people competing in the auctions, and that helps the industry.”

For the most part, people were able “to make their purchases in person at the front door,” said Andrew Miller, vice president of sales at a local auto dealer.

“A lot of people have decided to put their faith in the local dealers, or to go out and have some fun, so it was great to see that.”

The sale was one of several auctions held this month in Vancouver and Calgary, which have also seen significant increases in their average price.

“With the current global economic situation, we’re seeing a lot less demand for cars in our markets than we were last year,” said Miller.

“If you’re not seeing an uptick in demand, you might be seeing an increase in prices, but there’s a lot that’s been kept quiet.”

For those looking to cash in on the surge in sales, one local dealer has already made a profit from selling off their inventory.

“My local dealership is taking a hit for the past few years and we’re hoping that this is the next step to get them out of debt,” said Mike Bowers, vice-president of sales.

“They’re going to have to go into the bank, which they’ll probably be able to do with the interest they’ve taken out of the bank.”

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