Continuing our partnership with DesRosiers Automotive Consultants (DAC), the UCDA once again reached out to Members to take the pulse of the industry in Ontario.
This time, we asked members to comment on their experience in the used vehicle market in 2025 and to look forward to 2026.
The majority of respondents were independent used car dealers (77.8%), but a sizeable number of new franchised dealers (22.2%) also took the time to provide their feedback.
In 2025 franchised respondents reported a drop in used vehicle sales, while independents reported a rise. This seems to underline a theme in 2025 over 2024, where franchised dealers seemed a little less pleased than used vehicle dealers with how the year went.
The result, not surprisingly, is that franchised dealers are less optimistic than independents about 2026 with new car dealers projecting sales of 404 units (down from projections of 426 in 2025) and used vehicle dealers looking more hopefully at 201 units over 182 in 2025.
Franchised dealers felt sourcing used vehicles in the last 6 months had gotten much harder (52% felt this over 34.3% in 2024). Independent dealers opinion on this saw little change from 2024 (48.2% in 2025 over 45.3% in 2024).
Interestingly, used vehicle dealers noted an easing in supply difficulties for used vehicles in the 1 – 7 year categories, the most desirable used vehicle inventory. This is in line with the UCDA’s expectations of the effect of tariffs and other pressures on better used inventory in Ontario.
New car dealers continue to source most of their used vehicles (65.4%) from consumers, while auctions continue to be the most important source of used vehicles (50.6%) for used car dealers.
The survey also provides some interesting data on how customers are paying for their vehicles. The majority of customers (65.9%) continue to approach used car dealers with cash in hand, whereas most customers of new car dealers (58.1%) are purchasing vehicles through loans arranged at the dealership.
Leasing is very quiet at both new (2.3%) and used vehicle dealerships (4.5%).
Overall, customers continue to prefer to complete their deals entirely at the dealership (53.4%), with some (39.8%) contacting the dealership online first before closing the deal at the dealership, only 6.9% complete entirely online, and this is down from 8% in 2024.
The shift to electric continues to be slow on the after-market side.
Approximately 34.7% of new car dealers report that a small portion (1 to 5%) of their used vehicle sales were full battery (BEVs). Used plug in hybrids (PHEVs) appear to be slightly more popular with customers of new car dealers with 65.3% of these dealers reporting that PHEVs account for between 1 to 5% of their sales and a handful (12.2%) reporting that they account for 6 to 10% of used vehicle sales. Even less new car dealers (4.1%) reported that PHEVs account for over 10% of their used vehicles sales.
Used electric vehicle BEV sales appear to be down for independents in 2025 over 2024. Only 21.1% reported 1-5% of sales in that category, down from 35.7 in 2024. A huge jump in 0% of such sales can be seen in 2025 with 71.1% up from 44.6% in 2024.
By contrast, it’s a little less grim on the PHEV side where sales in the 1-5% category are up to 26.4% over 13.3% in 2024. Overall, the numbers remain stagnant.
You can see the full survey here: