Used vehicle exports to the United States continue to soar to unprecedented levels as off-lease volumes take a dive, said DesRosiers Automotive Consultants in its latest update.
DAC explores the dynamics of the used vehicle market in its recent DesRosiers Used Vehicle Report, along with what those dynamics will mean for the future of used vehicle sales in Canada. Since 2013, the trend of vehicle exports to the U.S. being negligible and Canadian imports being quite notable (exceeding 80,000 units in 2010) has reversed.
DAC said its latest data reveals “record levels of U.S. imports in the post pandemic timeframe — on a scale never seen previously.” The company has been tracking a number of 30-plus variables, and with this latest data being one of them. They are also tracking the projected number of off-lease vehicles in Canada.
“Declining vehicle sales in the 2017-2022 period compounded with rapidly falling lease rates mean that the number of off-lease vehicles that will enter the Canadian used vehicle market will plummet in the coming years — further starving the used vehicle market of supply,” they said.
In putting together their forecast for the used vehicle market, Andrew King, Managing Partner at DAC, said in a statement that the firm tracked a wide array of dynamics that include used vehicle trade flows, off-lease rates, new vehicle availability, consumer demand, vehicle pricing, and more.
