Used vehicle sourcing remains a primary concern for Canadian dealers heading into 2026, according to a new survey conducted by DesRosiers Automotive Consultants (DAC) in partnership with the Used Car Dealers Association.
“The used vehicle market remained highly dynamic in 2025,” said Andrew King, Managing Partner at DAC, in a statement. “Beyond the obvious pressures of the trade conflict between Canada and the USA, the market was buffeted by the echoes of low sales volumes of new vehicles in 2020-23, the severely decreased supply of off-lease vehicles, and shifting immigration policies.”
The survey gathered responses from both independent used vehicle dealers and the used vehicle operations of franchised new vehicle dealers. Franchised stores reported average used sales of 354 units per location in 2025, compared with 173 units for independents. Both groups expect improvement in 2026, projecting averages of 405 and 201 units, respectively.
Still, inventory flow remains strained. About 52.0 per cent of franchised dealers said sourcing worsened over the past six months, with 48.2 per cent of independents reporting the same. Roughly 38.0 per cent of new vehicle dealers and 42.1 per cent of independents reported no change, while only about 10 per cent in each group saw improvement.
Sourcing channels reflect ongoing structural differences. Franchised dealers acquired 65.4 per cent of used inventory directly from consumers, while independents relied primarily on auctions, which accounted for 50.6 per cent of supply.
Battery electric vehicles remain a small but growing slice of the used market. Most dealers reported no BEV sales in 2025, though 34.7 per cent of franchised stores said BEVs represented 1-5 per cent of volume, compared with 21.1 per cent among independents.
Demand may be stabilizing, but sourcing remains a variable that may define margins in 2026.
