In working with friends and colleagues at the Used Car Dealers Association, DesRosiers Automotive Consultants reached out to the Canadian used vehicle dealer community and discovered that there are major dynamics at play as the market shifts.
More than 400 UCDA members responded to DAC’s survey, both independent dealers and the used vehicle arm of franchised new vehicle dealers. They offered their view on the used vehicle market in 2023, along with their expectations for the current year.
“With a resurgent new vehicle market, the outlook for the used vehicle sector will be fascinating to watch,” said Andrew King, Managing Partner at DAC, in a statement. “While some consumers are turning their attention back to the new vehicle market, there will be a shortage of recent model year used vehicles for the next few years as off-lease numbers plummet.”
King also said that increases in new vehicle prices, ZEV mandates, and financing shifts all point to the used vehicle market as being “highly dynamic in 2024 and beyond.”
For current year sales expectations, franchised new vehicle dealers and independent used vehicle dealers seem optimistic. On average, they expect to see growth from 203 to 224 units. Among franchised new dealers, sales are expected to rise from an average of 311 units to 341. And sales among independent used dealers are anticipated to grow from 160 to 177 units.
However, when DAC asked dealers about supply and the sourcing of vehicles over the past six months, which they described as “a major point of concern in recent years,” they said respondents were split. Forty-three-point-three per cent of independent used vehicle dealers see the situation as worsening. And 37.3% of franchised new vehicle dealers see it improving.
dealer, C. auto, Lefko, P., & MacDonald, S. (2024, March 1). Key dynamics at play as used vehicle market shifts. Canadian Auto Dealer. https://canadianautodealer.ca/2024/03/key-dynamics-at-play-as-used-vehicle-market-shifts/