Used-vehicle sourcing remains a challenge for Canadian dealers, with nearly half of franchised new-vehicle dealers surveyed reporting that conditions worsened during the first half of 2026.
The findings come from a survey by DesRosiers Automotive Consultants (DAC) and the Used Car Dealers Association (UCDA) of independent used-vehicle dealers and the used-vehicle operations of franchised new-vehicle dealers.
DAC said lower new light-vehicle sales between 2021 and 2024 are now contributing to a shortage of off-lease vehicles entering the used market. Despite those supply constraints, used-vehicle sales remained relatively stable during the first half of 2026.
“The used vehicle market has proved resilient amidst the multitude of challenges it has faced,” said Andrew King, Managing Partner at DAC, in a statement. “How this market develops in the coming years still depends heavily on Canada’s economic trajectory, the U.S. initiated trade war, population shifts, and a myriad of other evolving factors.”
Among franchised dealers surveyed, average first-half used sales slipped to 158 units in 2026 from 163 during the same period last year. Independent dealers reported a larger decline, to an average 54 units from 63.
Sourcing remains a particular pressure point. Some 48.6 per cent of franchised dealers said sourcing had worsened during the first half, while 45.7 per cent reported no significant change. Among independents, 52.1 per cent reported worsening conditions.
The two dealer groups also differed substantially in where they obtained inventory.
For franchised dealers, an average 67.7 per cent of vehicles sourced during the first half came from consumers. Independent dealers relied most heavily on auctions, which accounted for an average 48.6 per cent of their sourcing.
For the full year, franchised dealers surveyed expect used-vehicle sales to average 303 units, compared with 108 among independent dealers.
