Used Vehicle Exports to the US Continue to Soar while Off-Lease Volumes Plunge |

The used vehicle market is influenced by a complex set of intertwined variables – and in the most recent DesRosiers Used Vehicle Report – we explore these dynamics and what they will mean for future used vehicle sales in Canada. One such unique variable has long been the flow of vehicles between Canada and the United States. Following the financial crisis, vehicle exports to the United States were negligible while Canadian imports of used vehicles exceeded eighty thousand units in 2010. However, since 2013, the situation has reversed and the United States has seen used vehicle imports levels soar to unprecedented levels. DAC has recently obtained the most up to date data on this variable that clearly shows continued record levels of US imports in the post pandemic timeframe – on a scale never seen previously.

A second critical dynamic amongst the 30+ variables we track in the report is the projected number of off-lease vehicles in Canada. Declining vehicle sales in the 2017-2022 period compounded with rapidly falling lease rates mean that the number of off-lease vehicles that will enter the Canadian used vehicle market will plummet in the coming years – further starving the used vehicle market of supply.Andrew King, Managing Partner at DAC commented “In putting together our forecast for the used vehicle market we track a wide array of dynamics including used vehicle trade flows, off-lease rates, new vehicle availability, consumer demand, vehicle pricing and many more. By integrating these variables into our model, we have developed a detailed outlook for the market in the coming years and an analysis of the market by channel and brand.”

Azarov, D. (2023, October 18). Used Vehicle Exports to the US Continue to Soar while Off-Lease Volumes Plunge. DesRosiers automotive reports.