Summary

Canada's history of the used automobile industry is rich and vibrant, reflecting the nations own social and economic development. Let's take a trip down memory lane and explore the amazing journey of used cars in the Great White North, from modest beginnings to a thriving multi-billion dollar business. The rise in online auto platforms, rising new car prices, and consumers' growing preference for using private transportation due to rising GDP per capita and personal disposable income are the main factors driving the growth of the used car market in Canada. Consumers prefer private transportation options to improve their convenience and personal mobility when their financial stability increases. But some of these consumers are discouraged from buying new automobiles due to the recent increase in new car prices, which has increased demand for used cars in Canada. One of the main issues facing the used automobile industry is the abundance of dealerships that provide lower commissions than their competitors in order to obtain a competitive advantage, resulting in a highly fragmented market. Added to that, one of the main sources of frustration for private companies in this market is Canada's government-run auction mechanism, which provides consumers with cheaper used cars. The ability of private enterprises to generate revenue is negatively impacted by this platform, even while it helps consumers buy cheaper used cars. The market for used automobiles in Canada will be helped throughout the projection period by the government's strong policy to encourage the electrification of the vehicle fleet and the ban of gasoline and diesel cars to promote the reduction of carbon emissions. For the convenience of mobility, consumers who are ready to spend less on alternatives to new-energy vehicles are increasingly choosing to buy old cars.

According to the research report "Canada Used Car Market Overview, 2029," published by Bonafide Research, the Canada Used Car Market was valued more than USD 60 billion in 2023. Canadians on a tight budget are turning to the used car market due to the rising cost of new cars, which is being driven up by reasons such as inflation and shortages of semiconductor chips. With slower rates of depreciation and a greater selection of prices to suit different budgets, used cars provide substantially better value for the money. Canadians are choosing value and practicality above brand-new products due to the growing cost of living. Used automobiles offer a dependable and reasonably priced alternative to new cars, without the high cost. When it comes to inventory, the used car market has far more of it than new car dealerships. This increased variety guarantees that consumers will be able to locate the ideal car to fit their unique requirements, tastes, and financial constraints. Virtual marketplaces such as Kijiji, AutoTrader, and Canadian Used Cars have completely transformed the used automobile market. These platforms make it easier than ever to find and buy a used automobile by providing convenient search choices, virtual tours, and instant contacts with sellers. Since the warranties on newer models expire, old automobiles typically cost less to maintain and repair than their equivalents. This financial benefit is noteworthy for clients on a tight budget seeking a dependable and reasonably priced mode of transportation. A large portion of the Canadian population is used to driving and maintaining conventional gasoline-powered cars. Some people may be put off by this degree of comfort and familiarity when thinking about electric cars (EVs), which have distinct driving characteristics and maintenance requirements.

Based on Vehicle Type market is divided into Conventional, Hybrid, and Electric. When it comes to secondhand cars, conventional cars are typically much less expensive to purchase than hybrid and electric vehicles (EVs). Their price difference makes them easily affordable for a larger group of customers, particularly those on a tight budget. In the Canadian market, there are far more used conventional cars available than there are hybrids and electric vehicles. Because of this abundance, consumers have more options to choose from when choosing the ideal car for their requirements and tastes. Conventional gasoline-powered vehicle operation and maintenance are commonplace for many Canadians. Some people may be discouraged from transitioning to hybrid or electric vehicles (EVs) because of their familiarity and comfort level, as these vehicles have different driving characteristics and require different maintenance schedules.

Based on Body Type market is divided into Hatchbacks, Sedan, SUV & MUV, Others. Sedans continued to be the most popular vehicle type among buyers of used automobiles in the Canadian market. In Canada, consumers who were willing to buy new cars favored SUVs above all other models; however, those who were shopping for pre-owned cars preferred sedans. Because they are less expensive than other vehicles in the used car market, secondhand sedans are in high demand. When compared to luxury SUVs and MPVs, these cars are also more affordable for daily commuting. As of 2022; the Toyota Corolla, Hyundai Elantra, and Honda Civic were among the best-selling car models in Canada.

Based on Fuel Type market is divided into Petrol, Diesel, Others. In the used market, gasoline-powered cars are typically far less expensive to purchase than hybrid and electric vehicles (EVs). They are easily obtainable by a broader spectrum of customers due to their price, particularly those who are on a tight budget. In general, gasoline-powered vehicles especially older models depreciate more slowly than hybrid and electric vehicles. This indicates that they are a generally safe investment because they hold their value better over time. Compared to hybrids and electric vehicles (EVs), which can have complicated electric and hybrid powertrains, gasoline-powered cars typically have reduced maintenance and repair costs. This financial benefit is noteworthy for clients who are cost-conscious.

Based on Size market is divided into Mid-Size, Compact, SUVs. Mid-size cars provide a practical middle ground between big and small cars, with enough of room for both passengers and freight without appearing clunky. Because of their adaptability, they are perfect for active people, families, and people who occasionally need to transport heavier objects. There are several different body types included in the mid-size market, including as sedans, wagons, and SUVs. Whether utility is the most important factor (wagons) or striking a balance between comfort and driving dynamics is preferred (sedans), this selection accommodates a range of requirements and tastes. The mid-size automobile class is growing in popularity in the Canadian used car market because of its excellent blend of comfort, safety, affordability, and versatility. It meets a wide range of purposes and provides a useful and affordable choice for different driving styles and lifestyles.

Based on Vendor Type market is divided into Organized, Unorganized. Connecting with potential purchasers has become simpler for private sellers because to the growth of digital technology and internet platforms. Used car sellers can offer their vehicles on numerous online classifieds, auction websites, and social media channels, and reach buyers directly. The unorganized segment has grown as a result of the move to digital channels. The unorganized market may eliminate or significantly lower the middlemen's costs related to used automobile dealerships. Those seeking a more affordable transaction may find these cost savings appealing. In comparison to regular dealership sales, unorganized transactions frequently offer greater flexibility and informality. More influence over the details of the transaction, including negotiations and payment terms, may be granted to buyers and sellers.

Based on By Distribution Channel market is divided into Offline, Online. With several used automobile dealerships and online used car marketplaces operating across Canada, the market is extremely competitive and fragmented. AutoCanada, Kijiji, AutoTrader, Carfax, Canada Drives, Clutch, CarDoor, Craiglist, Carpages.ca, and Go Auto are a few of the prominent participants. These competitors compete on a number of factors, including used car prices, internet presence, value-added services like financing and warranties, commissions collected, the quantity of listings on their platform, and availability of performance data on used cars, among others.

Considered in this report:
• Geography: Canada
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report:
• Canada Used Car market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle Type:
• Conventional
• Hybrid
• Electric

By Body Type:
• Hatchbacks
• Sedan
• SUV & MUV
• Others

By Fuel Type:
• Petrol
• Diesel
• Others

By Size:
• Mid-Size
• Compact
• SUVs

By Vendor Type:
• Organised
• Unorganised

By Distribution Channel:
• Offline
• Online

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Used Car industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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