Retail sales of new and used vehicle dealers saw a dramatic split in performance during the first quarter of 2023 as the automotive aftermarket pushed forward, according to DesRosiers Automotive Consultants (DAC).
New vehicle dealers managed a 9.3% increase, thanks largely to more inventory that helped their sales performance. But used vehicle dealers experienced a 2.5% decline in Q1, and for several reasons: many consumers shifted their focus to what was available in the new vehicle market, and prices stabilized.
“Retail sales in the automotive market saw fascinating market dynamics in the first quarter of 2023. Gasoline has leveled off, the aftermarket continues to outperform, while market forces push new and used dealers in different directions,” said Andrew King, Managing Partner at DAC, in a statement.
According to DAC, the cost of gasoline in Q1 remained mostly flat; the price-jumps from a year earlier — which saw a sharp increase due to the invasion in Ukraine — have largely subsided. Gasoline stations in Canada saw a 0.9% increase in retail sales during the first quarter of the year.
As for the aftermarket, which DAC said “continued to be a pillar of strength in the industry,” automotive parts, accessories, and tire stores enjoyed a 10.2% increase in retail sales. A year earlier, in Q1 of 2022, the aftermarket also enjoyed elevated levels in retail sales — which are more pronounced this year.
