Canadian used car sales increased 5% last year amid semiconductor shortages

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Published February 9, 2022 at 1:34 pm

TORONTO — DesRosiers Automotive Consultants say used car sales increased five per cent last year amid semiconductor shortages that hampered the new car market and drove buyers to used car lots.

A survey of 450 members of the Used Car Dealers Association found that an average of 250 used vehicles per franchised and independent dealer were sold in 2021, up from 238 a year earlier. Compared with 2019, sales were down eight per cent from an average of 273.

The report says independent dealers saw weaker growth than franchised dealers last year because they lack off-lease trade-ins, and therefore have a harder time sourcing used vehicles.

Average sales are expected to climb to 256 per dealer this year, with independent dealers forecasting gains and franchised dealers foreseeing small decreases.

The survey also found large price increases across different used vehicle segments with more than half of dealers saying pickup truck prices increased at least 20 per cent.

Most dealers say prices for used SUVs and passenger cars increased 11 to 20 per cent.

This report by The Canadian Press was first published Feb. 9, 2022.

The Canadian Press

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