Less than 14% of used car dealerships in Ontario kept their stores open and running with regular hours in April, while the remaining percentage of dealerships were split between reduced hours or closure, according to DesRosiers Automotive Consultants (DAC).
The information was pulled from a survey conducted by the Used Car Dealers Association of Ontario (UCDA) between May 11-15. It included more than 1,300 used vehicle dealerships. DAC partnered with the UCDA to canvas its members, as to market conditions in the last few weeks and as to their outlook for the remainder of 2020.
“The used vehicle market is a hugely important part of the automotive industry and one that is too often neglected by government and industry alike,” said DAC, adding that “more than half (of dealer respondents) noted that their sales had decreased by at least 76% in April compared to April 2019, with roughly one per cent citing an increase.”
The largest segment of respondents (nearly 40%) said their expected outlook for the year overall is a 26-50% decline in used vehicle sales. Less than 30% expect their sales to drop 51-75%, and a little more than 10% are anticipating a decline of 76-100%.
On perceived change in used vehicles priced — April versus March — more than 30% of respondents said prices have decreased by 11-20%. Nearly 30% said they were down 6-10%, and a little more than 15% said sales dropped by more than 21%. A very small margin of dealer respondents indicated their pricing increased.
DAC will be updating its DesRosiers Used Vehicle Report for publication in the coming weeks.
The report profiles in detail the used vehicle market across Canada, and includes variables such as market size (national and regional), market share by distribution channel (new car dealer, independent used car dealer, private sale), market size by vehicle age, used vehicle imports and exports, and the market forecast 2020-2024.
