New analysis from J.D. Power and ALG estimates pickups, large utility vehicles and sedans are rolling into the U.S. from Canada at higher volumes than ever before.
Leveraging new-vehicle registration data, J.D. Power estimates that if the flow of used vehicles from the north continues at its current pace, 25 percent of pickups, up to 15 percent of large, mainstream and premium utility vehicles, and 10 to 25 percent of mainstream small and midsize cars that were sold new in Canada will eventually wind up in the U.S. as used vehicles.
Jonathan Banks, vice president, vehicle valuations and analytics at J.D. Power, said most of the inventory is coming from traditional auctions, though he's heard anecdotally of Canadian dealerships are selling used cars directly to U.S. counterparts.
"Everything seems to be in high demand," Banks told Automotive News. Canadian "dealers are complaining that they're not able to get the popular vehicles. The better units are going to the U.S., and the higher-mileage-to-average-condition units are staying in Canada."
According to Canadian Black Book data, the number of vehicles moving into the U.S. from Canada increased 4.3 percent to 309,505 from 2019 to 2020. From January to May of 2021, 151,952 vehicles were exported to the U.S.