Issues affecting the used market for the rest of this year

Canada’s used vehicle market is holding steady, for now. But dealers are keeping a close eye on sourcing issues and political uncertainty that could shake things up in the months ahead.

DesRosiers Automotive Consultants partnered with the Used Car Dealers Association (UCDA) to recently survey both independent used vehicle dealers and the used vehicle arms of franchised new vehicle dealers to gauge how 2025 is shaping up so far and what the rest of the year might bring.

“The automotive industry is notably exposed within the North American political landscape, and this is certainly true of used vehicles,” said Andrew King, DesRosiers’ managing partner. “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 the survey, franchised new vehicle dealers reported an average of 201 used vehicle sales in the first half of 2025, a modest increase from 194 during the same period last year. Independent dealers, however, saw a slight dip, with average sales falling from 69 to 63 units.

Looking ahead, franchised dealers forecast an average of 413 used vehicle sales for the full year, while independents expect to reach 134.

When it comes to sourcing vehicles, while the worst of the sourcing crunch may be behind the industry, challenges persist. Among independent dealers, 58.1 per cent said sourcing conditions worsened in the first half of 2025, while 31.1 per cent saw no change and just 10.8 per cent reported improvements.

Franchised dealers were slightly more optimistic, with 52.9 per cent reporting no change in sourcing, 41.2 per cent noting increased difficulty, and only 5.9 per cent seeing improvement. The ongoing shortage of off-lease vehicles remains a key issue for both groups.

Franchised dealers continue to rely heavily on consumer trade-ins, which accounted for 80.1 per cent of their used vehicle inventory. Auctions made up 12.3 per cent. Independent dealers, on the other hand, sourced 46.6 per cent of their inventory from auctions, followed by consumer purchases at 22.6 per cent and wholesale channels at 19.4 per cent.