High gear: Consumers have opted to purchase affordable used cars due to high levels of per capita debt

The Used Car Dealers industry in Canada has shifted gears and taken off at full speed over the five years to 2019. As economic conditions have improved and consumer spending has increased during the five-year period, consumers have released pent-up demand for big-ticket purchases such as automobiles. Industry profit margins have also expanded over the past five years, supported by higher average selling prices. Vehicle prices began to rise due to limited inventory. Times of economic struggles reduced fleet purchases and the number of leased vehicles, which caused a shortage in the one- to five-year-old used vehicles segment. Many of these positive trends are expected to continue over the five years to 2024...read more.

Industry Statistics & Market Size
Revenue
$14bn
Annual Growth 14-19
8.0%
Forecast Growth 19-24
Profit
Employment
14,639
Businesses
8,146
Market Share of Companies

Industry Threats & Opportunities

  • The overnight rate will make vehicle financing more expensive and less desirable
  • High gasoline prices typically hamper new and used vehicle sales
  • Consumers have increasingly been opting to purchase used vehicles over new ones
  • Industry Report - Industry Locations Chapter

    The geographic spread of establishments in the Used Car Dealers industry in Canada generally follows the distribution of the overall Canadian population. With a population of more than 37.3 million dispersed over a large geographic area, the majority of the population tends to live in the southern part of the country, which is also the home to 17 of Canada’s largest cities. Additionally, according to the Automotive Industries Association of Canada, 51.0% of two-person households and 57.0% of four-person households have at least two vehicles. Therefore, the majority of industry sales are completed in the nation’s most populous regions, with Ontario accounting for an estimated 39.2% of industry establishments, as well as 38.7% of the total Canadian population in 2019. Sim...purchase to read more.

    Additional Insights for the Used Car Dealers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Used Car Dealers Industry are

  • Provision of superior after-sales service
  • Superior financial management and debt management
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and New vehicle sales in the Used Car Dealers industry impact industry performance..

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    What's in this report

    What is the Used Car Dealers Industry?

    This industry sells used passenger vehicles, which includes cars, light trucks, sport utility vehicles and vans. Used car dealers also provide parts and repair services and financing and insurance.

    Industry Products
  • Used vehicles
  • Parts and services
  • Financing and insurance
  • Industry Activities
  • Selling used cars
  • Selling used light trucks
  • Wholesaling used vehicles
  • Offering vehicle financing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • New vehicle sales
  • World price of crude oil
  • Overnight rate

  • Current Performance
  • Renewed demand and rising prices
  • Volatile gas prices
  • Improving quality
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising demand
  • Supply trends
  • Table: Used Car Dealers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Used Car Dealers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Auto Parts Stores in Canada
  • Automobile Wholesaling in Canada
  • Car Body Shops in Canada

  • Products & Services
  • Used vehicles
  • Parts and services
  • Financing and insurance
  • Chart: Used Car Dealers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Prime customers
  • Super prime customer
  • Nonprime customers
  • Subprime customers
  • Deep subprime customers
  • Chart: Major Market Segmentation for the Used Car Dealers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Used Car Dealers

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Used Car Dealers Industry

  • Industry Globalization
    AutoCanada Inc.,
  • Table: AutoCanada Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Used Car Dealers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Used Car Dealers Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Per capita disposable income (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Car Lease
  • When a financier purchases a car on behalf of the customer, and then leases the vehicle to the customer in return for monthly rental payments.
  • Curbstoners
  • Dealers that buy, sell and trade used vehicles without a licence.
  • Fleet
  • A large collection of cars used for any specific business.
  • Lemon Law
  • A law obligating manufacturers or sellers to repair, replace or refund the price of motor vehicles that prove to be defective.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Used Car Dealers market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Used Car Dealers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Used Car Dealers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Used Car Dealers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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