“From a sales volume perspective, 2022 was not an easy year for used vehicle dealers,” says a new survey by DesRosiers Automotive Consultants. Over 400 members of the Used Car Dealers Association responded to the survey with both independent dealers and the used vehicle arms of franchised new vehicle dealers offering their perspectives on the used vehicle market in 2022, as well as their outlooks on the coming year. Volume declines were recorded for both franchise and independent dealers.
“Looking forward, many in the community are hopeful volumes will recover in light of improvements in supply alongside some moderate price declines,” said Andrew King, Managing Partner at DAC. “However, whether the hopes for improved volumes will hold up in light of a weakening economy and improved new vehicle availability remains to be seen.”
UCDA members were surveyed regarding their sales volumes over the past four years to offer some context for the performances seen in 2022. For new vehicle dealers, used vehicle sales dropped in 2022 to just below pre-pandemic levels on average. For used vehicle dealers, sales saw a decrease in 2022 as well, although the overall average of 160 units settled above the average of 157 cited for 2019.
When asked about their sales expectations for 2023, both franchised new vehicle dealers and independent used vehicle dealers were optimistic. Used vehicle dealers expect to sell an average of 186 units, well above the past four years. According to the report, “Achieving such lofty goals may prove challenging given industry dynamics, but for now the optimism amongst respondents was widespread”.