What Dealers, Lenders, And You Stand To Gain From The Canadian Used Car Industry

Automotive Finance, Credit Education

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Used Car Dealer

In any industry, there are several mutually dependent players whose various exchanges drive the wheels of enterprise forward. As one grows so do the rest, and as one dwindles, the others are destined to suffer. Driven by the pursuit of profit or personal gain, each player helps the other, so that they might do the same.

Maintaining this kind of positive balance in the Canadian used car industry is essential to maintaining its growth. The cycle is often convoluted, but understanding exactly what dealers and lenders want, is critical to empowering you as a consumer. This guide will help you understand what it is that dealers, lenders, and consumers stand to gain from the used car industry, so that you might better leverage your own position.


A dealer’s desire is pretty straightforward. They want your money! It’s not always as malevolent as it sounds, but yes, the driving force that motivates dealers is of course profit. However, the various ways that they seek this profit can be complex and multifaceted.

  • Used car dealers both buy and sell used cars, the prices of which are contingent on a plethora of subjective variables.

  • Properly managing how much they pay for a vehicle and how much they then sell it for is critical for used car dealers and informs every decision they make.

  • Put simply, what dealers stand to gain from the used car industry is the opportunity to make a higher profit, relative to how much they have to spend. It’s a high-risk, high-reward scenario, as they continually buy vehicles for which there is no guarantee they will sell.

The way that used car dealers pursue their bottom line is by properly negotiating their purchases and sales. Making shrewd decisions, selling with passion, and working with customers, is the only way that any used car dealer can accomplish their goal. Ridetime has become the success that it is, by only buying and selling the best merchandise at the best prices and valuing the customer above all else.


For the most part, lenders also want your money. But in the used car industry in particular, they actually want something a little more valuable. More than profit, they want your debt. By fronting consumers money to then pass on to dealers, lenders stand to gain not only payment, but also payment conditions that they can negotiate in their favor.

  • Lenders love to finance used car purchases, because they can typically negotiate higher rates for a smaller sum. While used cars don’t cost as much as new cars, they are older and less secure. So, the rates that lenders can apply to used cars are much higher.

  • This is what lenders stand to gain from the used car industry. They’re able to front applicants less money off the bat, while still holding them to slightly higher rates.

Lending is an excellent service that can help you get into a vehicle you wouldn’t otherwise be able to have. That being said, lenders are still doing business, and keeping consumers on the hook for longer means a bigger payoff for them. That’s why Ridetime works with Canada’s most reputable and consumer friendly lenders, to help you get the car you want at a rate you can manage.


What you, the consumer, stands to gain is of course a vehicle. But understanding exactly what that means in the scope of the used car industry is critical to realizing your own agency. You stand to gain a car, lenders stand to gain your debt by helping you buy a car, and dealers stand to gain a profit by selling you a car. If you don’t buy a car, no one gains anything, and properly leveraging this reality can radically tilt the odds in your favor.

  • Since used car dealers can only earn back the money they already spent by making a sale, consumers have more agency when negotiating price.

  • Since lenders need you to make a purchase in order to get their skin in the game, consumers have more agency when seeking approval.

Being a consumer can often feel hopeless and frustrating. It seems that everybody else has what you want, and you have nothing. But that’s not true, Ridetime has seen the power of the consumer first hand, and knows that working fairly with customers is the only way to do business.


Ridetime is one of the most competent dealers in the Canadian used car industry. We have a firm grasp on the ebb and flow of the industry and understand how best to navigate it. Because of this, Ridetime knows that it’s advantageous for everyone to put the customer first every time.


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