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April 3, 2025

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2025 Canadian Car Shopper Purchase Intentions Remain Resilient, Despite the Noise

Car shopper purchase intentions serve as an indicator of overall industry health and getting on the lead foot to understanding consumer purchasing patterns. Staying attuned to these behaviors is essential in maintaining a competitive edge in the Canadian automotive landscape. By closely monitoring car shopper purchase intentions, dealerships can anticipate and adjust to evolving market trends, adapt their strategies, and position themselves for success.

Findings from our most recent Vehicle Purchase Intentions study, fielded in mid-February, highlights an encouraging development to kickoff 2025. Following a slight dip in purchase intent amongst Canadian car shoppers the latter part of 2024, our research shows that vehicle purchase intentions in early 2025 have rebounded. This resurgence has brought numbers back in line with levels observed in early 2024, with a pronounced uptick in new vehicle interest.

Customer sentiment among prospective vehicle buyers in Canada has remained consistent, with 1 in 2 believing now is a good time to make a major purchase, a trend that has held steady since the second quarter of 2024. This stability suggests a resilient consumer mindset, despite fluid economic conditions mixed with other external factors. The consistent level of optimism about making significant purchases, such as buying a vehicle, underscores steady confidence among consumers, which could facilitate strong continued demand in the Canadian automotive market.

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Confidence in the current economy and personal finances has remained steady since the close of last year. Looking 6 months ahead, sentiment indicates a cautious shift in economic optimism and a slight dip in personal financial outlook, suggesting concerns regarding the state of the economy in light of tariff uncertainty and upcoming Canadian federal elections, among other factors.

The recent trade tensions between Canada and the US have echoed through the automotive market, with 2 in 3 potential buyers acknowledging an impact on their purchase considerations. Common responses from these buyers included budget reductions (30%), favouring Canadian made vehicles (30%), and spending more time comparing prices (29%). The growing emphasis on Canadian made vehicles indicates a surge in economic nationalism, as consumers seek to support domestic industries amidst uncertainty in North American trade relations.

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Online remains the top resource in the vehicle purchase journey, with 81% of respondents citing a reliance on digital information across one or more stages of the car shopping process. Online automotive marketplaces remain the leading information source for used car buyers, with 55% shopping online classifieds, followed by dealership websites (39%), and roughly 1 in 2 visiting the dealership showroom. New car shoppers follow a similar trend, with 51% visiting manufacturer websites, 41% frequenting dealership websites, and 39% shopping available inventory via online automotive marketplace. Notably, the study shows a four-point uptick in the usage of online automotive classifieds amongst used and new car buyers, as a key resource in the purchase process. These trends highlight the importance of a multi-channel approach for both automotive manufacturers and dealerships to cater to the preferences of different consumer segments.

Interest in purchasing a vehicle online, either in part or in full, remains stable over time. While 60% of respondents signalled that they are keen to conduct the purchase process entirely online, 87% of new and used car buyers are interested in completing at least part of the journey through digital means.

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New vehicle shoppers are increasingly embracing online channels for their vehicle purchase, with 66% demonstrating a preference for a process that unfolds entirely online, (compared to 52% for used car buyers). Additionally, 88% of new car shoppers prefer completing at least part of the buying process online, slightly higher than the 85% for used car intenders. Of the car shoppers interested in completing specific aspects of the purchase process online, 96% intend to research and compare vehicles, 91% are keen to inquire about vehicle availability, 85% are searching for vehicle delivery options, 83% desire to obtain a trade-in value for their current vehicle, and 82% have signalled intent to secure financing.

By signalling strong vehicle intentions to start off the year, Canadian consumers have demonstrated their resilience in light of the fluidity in macro and microeconomic dynamics. The Canadian automotive industry must continue to align to car shopper preferences, as success will hinge on effectively leveraging digital technologies to enhance the purchase journey while also maintaining offerings that align with consumer and market demands.

Payment Preferences Are Steady

How customers want to pay for their purchases remains unchanged over past studies. Overall, 49% of vehicle intenders plan to finance, with 38% of those looking at dealership financing; 43% from a financial institution; and the remainder intend to leverage a line of credit. Some 35% want to pay cash, while 16% prefer to lease, up from 14% in the first quarter of 2024. Financing is highest among new vehicle shoppers at 57%, while those looking for used vehicles are split almost equally between 43% who want to finance and 44% who prefer to pay cash. Leasing between the two isn’t all that far apart either, with 17% of new vehicle intenders and 14% of used vehicle shoppers demonstrating a preference for this option.

Consumers are confident, the Bank of Canada recently lowered its interest rates, and many Canadians are poised to make major purchases. Strategically tapping into the tools that put the right vehicles and their information in front of your prospects, and let you reach out promptly when they’re interested, while delivering on their shopping preferences, are the keys to turning vehicle shoppers into vehicle buyers.

Key Takeaways

Vehicle purchase intentions recovered in early 2025 following a slight decline in final quarter of 2024
While consumers feel stable in their current financial standing, apprehension about the upcoming six months resulted in a slight dip in overall confidence
Online automotive marketplaces remain the primary source for those intending to purchase a used vehicle (55%)
Vehicle purchase payment preferences remain unchanged, with an equal split between financing through dealerships and financial institutions
Online purchase options continue to attract strong interest among Canadian car shoppers, with 60% of consumers being open to completing the entire transaction online and 87% signalling that they’re interested in completing parts of the car buying journey digitally

Source: Car Shopper Perceptions & Intentions Research Study, DIG Insights, February 2025, (n=303).

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Infographic: Car Shopper Perceptions & Intentions

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