Sales expectations for used vehicles are decreasing, according to DesRosiers Automotive Consultants, which found that the market experienced a “meteoric” rise in prices from 2020 to 2022. It also saw a sharp decline in the availability of used vehicles during that period.
“The latter parts of 2022 and the first half of 2023 saw some moderation in used vehicle prices as improved new vehicle supply began to partially alleviate some pressure from used vehicle demand,” said Andrew King, Managing Partner at DAC, in a statement. “However, vehicle sourcing remains a concern and pricing still remains very high historically.”
DAC worked with its colleagues at the Used Car Dealers Association Of Ontario to reach out to the used vehicle retailer community and track 2023 to-date market performance as part of a survey. DAC said hundreds of UCDA members, both independent dealers and the used vehicle division of franchised new vehicle dealers, offered their views on the market.
What they found was that sales results for the first half of the year came in at an average of 67 units for independent used vehicle dealers, which is in-line with the results from the first half of 2022. For franchised new vehicle dealers, used vehicle sales showed light improvement — up to 155 units on average, thanks in part to more trade-ins.
Yet sales expectations for 2023 as a whole came in lower than what was cited at the beginning of the year — 305 units for franchised new dealers and 140 for independents.
“Sourcing of used vehicles remains problematic — especially for independent used vehicle dealers,” said DAC. “Only 12% of independents cited sourcing had improved, with a slim majority, at 51%, noting that their sourcing troubles have become worse.”
For details, see the graphs below.
