Canada’s used vehicle market has been affected by significant changes in the past few years in much the same way as the used car market in the U.S, but just as there are signs that more stability is settling in, a new set of disruptions has arrived.

According to DesRosiers Automotive Consultants’ work in conjunction with the Used Car Dealers Association of Ontario, the chaotic political and trade situation of the first half of this year presented yet another set of challenges just as the market has emerged from pandemic-driven uncertainty.

“The automotive industry is notably exposed within the North American political landscape, and this is certainly true of used vehicles,” commented Andrew King, Managing Partner at DAC.

“To date, the used vehicle market has remained fairly stable in the face of these forces, although it is questionable whether this pattern will continue.”

According to Statistics Canada, more than $21B worth cars were sold by used car dealers in 2023 generating just over $500 million in net revenue for the market segment.

For the aftermarket, used vehicle transactions present an opportunity both for parts supply and labour as vehicles are brought up to safety and resale standards. While refurbishment investments vary widely, it does present a market for independents, and of course some independent shops are also counted among the independent used car dealer segment.

For the first half of 2025, franchised new vehicle dealers noted that a very strong majority of their vehicles were sourced from consumers at 80.1% with auctions following at a distance at 12.3%. For independent used vehicle dealers, auctions were the most likely source at 46.6% compared to consumers at 22.6% and wholesale at 19.4%. This is in line with the usual pattern.

UCDA members were surveyed on their used vehicle sales in the first half of 2025. Responding franchised new vehicle dealers noted a sales average of 201 units for the first half of 2025 – slightly above the 194 in the first half of 2024. Conversely, independent used vehicle dealers noted a small decrease from 69 to 63 units on average. When asked about their expected sales for 2025 as a whole, franchised new vehicle dealers forecast an average of 413 units against independents at 134.

While the massive sourcing difficulties of the past few years have in large part abated, challenges do remain.

When asked about used vehicle sourcing in the first half of 2025, the majority of independents, at 58.1%, cited a worsening situation.

A further 31.1% noted no change while 10.8% saw improvements. On the other hand, a slim majority (52.9%) of franchised new vehicle dealers noted no change in used vehicle sourcing while 41.2% cited growing difficulties and just 5.9% saw improvements. The extremely low volumes of off-lease vehicles coming back into the market clearly remains an issue that is impacting all players.