Canadian car buyers show steady confidence despite economic pressures

Despite ongoing economic uncertainty, Canadian consumers remain eager to get behind the wheel of a new or used vehicle, according to new research

Released by AutoTrader in April, the 2025 Car Shopper Perceptions & Intentions study found that 27 per cent of Canadians plan to purchase a vehicle within the next six months — a four-point increase from November 2024 and back in line with August 2024.

New vehicle purchase intentions are leading the charge, with 18 per cent of respondents eyeing a brand-new ride, up four points since late last year. This uptick in intent comes even as high interest rates and vehicle prices continue to weigh on consumer sentiment.

Confidence in the economy remains relatively low, with just 42 per cent of respondents expressing optimism. However, personal financial confidence is holding steady, with 78 per cent saying they feel secure in their own financial situation. However, that dips to 74 per cent when looking at the next six months.

Among those who have decided to delay their vehicle purchase, the top reasons include the good condition of their current vehicle (50 per cent), high vehicle prices (29 per cent) and affordability concerns (22 per cent). High interest rates were also cited by 16 per cent of respondents.

Digital tools continue to play a central role in the car-buying journey. Online automotive marketplaces are the most popular destination for used car shoppers, with 55 per cent browsing classifieds, followed by dealership websites at 39 per cent.

When it comes to completing the purchase, Canadians are increasingly open to digital options. Three in five say they would consider buying a vehicle fully online, while 88 per cent of new vehicle shoppers and 85 per cent of used vehicle shoppers prefer to complete at least part of the process digitally. Key online activities include researching vehicles, inquiring about a vehicle of interest, arranging delivery or home test drives, getting trade-in valuations, and pre-qualifying for financing.

Image credit: Depositphotos.com