Approximately 2.1 million used vehicles were sold in Canada in 2023. This figure consistently surpasses new car sales, often by a ratio of nearly 2-to-1, highlighting the massive scale and importance of the pre-owned vehicle market for Canadian consumers. The market is dynamic, influenced by economic factors like interest rates and new vehicle supply chain issues, which can cause annual fluctuations of a few hundred thousand units.
To understand the market's composition, it's useful to look at the data by vehicle type and sales channel. The majority of transactions are for sedans and SUVs, with a growing segment for used electric vehicles (EVs) and hybrids. Sales occur through both franchised dealerships (which also sell new cars) and independent used-car lots.
| Vehicle Type | Estimated Annual Sales (Units) | Key Market Trend |
|---|
| Compact SUV/Crossover | ~750,000 | Highest demand segment; strong resale value. |
| Full-size Pickup Truck | ~450,000 | Consistently high volume due to commercial and personal use. |
| Mid-size Sedan | ~400,000 | Popular for affordability and fuel efficiency. |
| Hybrid/Electric Vehicle | ~85,000 | Fastest-growing segment as more models enter the used market. |
| Minivan | ~150,000 | Steady demand from families; limited new model options boost used sales. |
The supply of used cars comes from several primary sources. A significant portion consists of off-lease vehicles, typically three to four years old, which are well-maintained and have a known service history. Another major source is manufacturer and dealer fleet vehicles, including former rental cars. Finally, trade-ins at dealerships and private-party sales continuously feed the market. This constant churn of vehicles, shaped by what was popular and available new several years prior, ensures a diverse and ever-changing inventory for buyers.
