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9 Used Car Sales Statistics in Canada: Updated in 2024

car salesman talking to costumer

Note: This article’s statistics come from third-party sources and do not represent the opinions of this website.

Over the past few years, the percentage of Canadians preferring used cars over new cars has risen significantly. Many buyers opt for used cars because of the cost savings they present. The increased used car market size in Canada is also closely tied to the COVID pandemic, as shown in the statistics below.

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The 9 Used Car Sales Statistics in Canada

  1. In 2021, retail sales of used cars in Canada amounted to about $15.34 billion.
  2. The used car market in Canada had the biggest growth in nine years between 2020 and 2021, rising from retail sales of $12.03 billion to $15.34 billion.
  3. The Canadian used car dealers’ market size grew by 3.9% in 2022.
  4. Between 2017–2022, the Canadian used car dealers market size grew by an average annual rate of 2.5%.
  5. In August 2022, Canadian used car dealers hit sales of $1.88 billion, a 2.74% increase from $1.157 billion in July.
  6. The average listing prices for used sedans dropped 6% in June 2022 compared to the beginning of the year.
  7. In September 2022, used motor vehicle parts and accessories merchant wholesaler sales in Canada stood at $79.62 million. This was a decrease from $83.86 million a year ago.
  8. Between January 2020 and March 2022, used car prices saw higher percentage increases than new cars.
  9. In 2019, used car dealers had a net revenue of $343.7 million, compared to $3 billion net revenue for new car dealers.
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Market Size and Growth

1. In 2021, retail sales of used cars in Canada amounted to about $15.34 billion.

(Statista)

Retail sales of used cars in Canada reached $15.34 billion in 2021, representing a more than 100% increase since 2012 when retail sales amounted to about 6 billion dollars.

In the period between 2012 to 2021, the sales of used cars in Canada have steadily increased, only experiencing a short decline in 2020. In 2020, sales amounted to $12.03 billion, a decrease from $12.61 billion in 2019.

couple at the car dealer showroom
Image Credit: Nejron Photo, Shutterstck

2. The used car market in Canada had the biggest growth in nine years between 2020 and 2021, rising from retail sales of $12.03 billion to $15.34 billion.

(Statista)

After the short sales decline in 2020, used car retail sales in Canada experienced their biggest growth since 2012 between 2020 and 2021. Sales amounted to $12.03 billion in 2020 and rose by more than 3 billion to $15.34 billion in 2021.

The growth spurt in 2020 is attributed to the shortage of new cars in Canada due to production and supply constraints caused by the COVID pandemic. Since fewer new cars were on the market, most Canadians had to settle for used cars.


3. The Canadian used car dealers’ market size grew by 3.9% in 2022.

(IBIS World)

Two years after the COVID pandemic started influencing sales in the automotive market, the used car dealers market is still growing steadily. This shows Canadians are still buying more used cars than they were in the pre-pandemic years.

car dealership
Image Credit: Pixabay

4. Between 2017–2022, the Canadian used car dealers market size grew by an average annual rate of 2.5%.

(IBIS World)

An average annual growth rate of 2.5% over the past five years shows that even before the COVID pandemic, the Canadian used car market was gaining momentum.

As we’ve already pointed out, there was a slight decline in 2020, but the average over five years shows the market’s general direction has been upward.

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Price and Sales Fluctuations

5. In August 2022, Canadian used car dealers hit sales of $1.88 billion, a 2.74% increase from $1.157 billion in July.

(YCharts)

Some statistics, like this one, show that the volume of used car sales in Canada might be cooling off after the sharp increase at the height of the pandemic.

The -5.89% decrease in August 2022 sales is also evident in July and June numbers, which have declined compared to a year ago. Retail sales in July 2022 amounted to $1.157B, compared to $1.280B in July 2021. June 2022 sales reached $1.163B against $1.267B a year ago.

car salesman talking to a couple at the dealership
Image Credit: Antoni Shkraba, Pexels

6. The average listing prices for used sedans dropped 6% in June 2022 compared to the beginning of the year.

(Lowestrates)

Used car prices have reached new highs since the pandemic began, but lately, there have been indications that the prices are lowering.

Used sedan prices have dropped the most, with a 6% decrease in June 2022 compared to prices at the beginning of the year. This brought the price average down from $30,475 to $28,553.

For used pickup trucks and SUVs, prices have dropped by about 2% in the same period. While the average price of a used SUV was $35,159 at the beginning of 2022, it dropped to $34,303 two quarters later.

However, even as current used car prices decrease, they are still much higher than they were in the pre-pandemic years.


7. In September 2022, used motor vehicle parts and accessories merchant wholesaler sales in Canada stood at $79.62 million.

(YCharts)

As the sales volume of used cars in Canada declines in 2022, so does the merchant wholesale sales of used motor vehicle parts and accessories.

Used motor vehicle parts and accessories sales amounted to $79.62M in September 2022, representing a -5.06% decrease from a year ago ($83.86 million a year ago). It was also a decline from the previous month when sales amounted to $83.11M.

female signing car insurance document
Image Credit: Opat Suvi, Shutterstock

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Comparison to New Car Sales

8. Between January 2020 and March 2022, used car prices saw higher percentage increases than new cars.

(Statistics Canada)

Both used and new car prices increased significantly after the beginning of the COVID pandemic. However, used car prices saw bigger increases, doubling those of new cars and then tripling them.

In March 2022, used car prices reached a percentage increase of about 25%, while new car prices rose to 8% since January 2020. At the highest point, new cars had a percentage increase of 8% compared to almost 25% for used cars.

Used car prices growth outpacing those of new cars can be attributed to the increased demand for the former. The decreased production of new cars during the pandemic could be part of why new car prices have also increased in the same period.


9. In 2019, used car dealers had a net revenue of $343.7 million, compared to $3 billion net revenue for new car dealers.

(Government of Canada)

While the used car market size keeps growing, new car sales still make up most of the automotive sales in Canada.

In 2019, Canadian automotive dealers had a net revenue of $3.4B. New car dealers made up over $3 billion of the net revenue, while used car dealers contributed $343.7 million.

car sale
Image Credit: Ground Picture, Shutterstock

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Frequently Asked Questions About Used Car Sales in Canada

Which Between Used and New Cars Sell More in Canada?

Sales of brand-new cars surpass those of used cars. However, used car sales have been increasing steadily over the past decade.

Reasons more buyers are opting for used cars include; budget limitations, availability of many options, and increased production quality, which means cars are in good shape even after years of use. Provincial laws protecting buyers from unscrupulous dealers have also increased Canadian’s confidence in buying used cars.

Do I Need to Pay Tax on a Used Car in Canada?

Yes, you need to pay tax when buying a used car in Canada. This includes both federal and provincial taxes. The amount you pay for the provincial tax depends on your province. At the federal level, a goods and services sales tax of at least 5% applies.

car dealership
Image credit: 4 PM production, Shutterstock

Can I Return a Used Car to the Dealer After Purchase?

You can return a used car to the dealer after purchase if it’s per the sales contract. In some provinces, you can return the car if the dealer has violated certain buyer’s rights enshrined in the provincial laws.

For instance, in Ontario, you have 90-days to cancel the sale if a registered dealer provides inaccurate information about the odometer reading, make, model, or year of the vehicle. The Ontario Motor Vehicle Industry Council enforces this law.

Can I Buy a Used Car Online in Canada?

Yes, you can buy a used car online in Canada. More Canadians are comfortably buying used cars online and having them delivered to their homes.

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Conclusion

Canada’s used car market growth trend reflects the industry’s behaviour worldwide. For many buyers, used cars are as good as new ones, with a lower price tag. They get cheaper cars that can still serve them for many years, making the deal worth it.

As the COVID situation eases, it’s interesting to see how used car sales numbers will develop when the production of new ones regains momentum. But for the moment, used car retailers are catering to a higher demand than ever.

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Featured Image Credit: Olha Tytska, Shutterstock

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