Canadian Dealers Making More Profit on Used-Car Sales

As the early part of spring came to a close, Canadian dealers’ were making a bit larger of a profit on their used-car sales, according to analysts at J.D. Power and Associates.

In fact, dealer profitability for used cars rose from just under $1,500 to right above that mark this past April. Specifically, gross profit for used cars rose $124 in April to sit at $1,404, the company shared in recent Automotive Market Metrics from its Power Information Network.

And dealers are making more off of used trucks, as well, as the gross profit rose $29 to $1,690.

In light of this trend, it is perhaps surprising that the average transaction price for used cars fell slightly in April, sliding $281 from $17,872 in March to $17,591 this April.

Moving along, J.D. Power analysts also provided information on how consumers are choosing to buy these very same used cars. Interestingly, over half of April’s used-vehicle transactions were paid for in cash (52 percent). Loans accounted for 45 percent of used-car transactions, and 3 percent of consumers chose to lease.

J.D. Power also provided the following charts to illustrate its points: