Some optimism remains on the part of dealers when it comes to the used vehicle market, although concerns linger and broader economic challenges loom. But for 2024, DesRosiers Automotive Consultants’ latest update found that the used vehicle market was pulled at by diverse and often countervailing forces.
“A growing shortage of off-lease vehicles, improved new vehicle availability, declining interest rates, and a falling Canadian dollar were just some of the factors shaping the market in 2024,” said Andrew King, Managing Partner at DAC, in a statement. “Overall however, some balance in pricing is returning as the market stabilizes after a turbulent four years.”
DAC worked with the Used Car Dealers Association of Ontario and reached out to the Canadian used vehicle dealer community to have independent used vehicle dealers and the used vehicle arms of franchised new vehicle dealers respond to its survey. They shared their perspectives on 2024 and their outlook for the current year.
UCDA members were surveyed on their used vehicle sales for 2024. A sharp difference was seen between independent used vehicle dealers and franchised new vehicle dealers, which DAC said is usual. They said participating franchised new vehicle dealers saw an average of 395 units retailed by respondents. Independents saw an average figure of 150 units sold for the year.
“Dealers were characteristically optimistic about their outlook for 2025 with participating franchised new vehicle dealers forecasting average sales to rise to 426 units and independents seeing an increase to 182 units,” said DAC in its update. However, it will be watching how that optimism bears out as market concerns linger and the Canadian economy is faced with broader challenges — including potential tariffs.
