Used dealers brace for tight supply

Canada’s used vehicle dealers closed 2025 with a split performance and a cautious optimism for 2026, reporting tight supply, uneven battery electric vehicle activity and clear differences between franchised and independent stores, according to a new survey by DesRosiers Automotive Consultants in partnership with the Used Car Dealers Association.

“The used vehicle market remained highly dynamic in 2025,” said Andrew King, managing partner at DesRosiers. “Beyond the obvious pressures of the trade conflict between Canada and the USA, the market was buffeted by the echoes of low sales volumes of new vehicles in 2020 to 2023, the severely decreased supply of off‑lease vehicles and shifting immigration policies.”

Surveyed dealers reported a wide gap in 2025 volumes. Franchised new vehicle dealers averaged 354 used sales per store, while independents averaged 173. Both groups expect gains this year. Franchised dealers forecast an average of 405 used sales per store in 2026. Independents expect an average of 201.

Sourcing remained a top concern. Over the past six months, 52 per cent of franchised dealers said sourcing worsened, compared with 48.2 per cent of independents. Still, 38 per cent of franchised dealers and 42.1 per cent of independents reported no change, while 10 per cent of franchised dealers and 9.8 per cent of independents saw improvement.

The channels dealers use to find inventory also differed. On average, franchised dealers sourced 65.4 per cent of used vehicles directly from consumers and 17.9 per cent from auctions. Independent dealers relied most on auctions at 50.6 per cent and sourced 22.4 per cent from consumers. The balance came from other channels.

Battery electric vehicles gained a small and uneven foothold on used lots. The most common response in both dealer groups was that they sold no BEVs in 2025. Among franchised dealers, 34.7 per cent said BEVs represented between one and five per cent of their sales. Among independents, 21.1 per cent reported the same share.

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