Tight Used Inventory Keeps Pressure on Fleet Replacement Costs
Used-vehicle inventory dropped for the third straight month in March, hitting its lowest level since at least 2019. Dealers had about 1.95 million units on hand, down nearly 6% year over year and more than 8% from February. At the same time, sales picked up in a typical seasonal pattern, driven by tax refunds and the ongoing price gap between new and used vehicles. For fleets, this means fewer options in the resale and replacement market, especially as days’ supply tightened to just 37 days—the lowest level since 2021.
Demand remains steady, but limited supply is keeping prices firm. The average used-vehicle listing price rose slightly to $25,390, while lower-cost units under $15,000 are especially hard to find, with supply well below the industry average. For fleet operators, the takeaway is clear: sourcing affordable used vehicles is getting harder, and replacement strategies may require more planning as inventory stays tight and pricing holds.
GM EV Pullback Signals Uncertainty for Fleet Electrification
General Motors is delaying plans to update its electric truck and SUV lineup, including the Chevrolet Silverado EV, GMC Sierra EV, Hummer EV, and Cadillac Escalade IQ. While current models remain available, future versions are now on hold as weak sales, high costs, and the loss of federal incentives weigh on demand. At the same time, GM is ramping up production of gas-powered trucks to meet stronger market demand, highlighting a clear shift in near-term strategy.
Fuel Tax Break Offers Little Relief for Canadian Fleets
Canada’s five-month suspension of the federal excise tax on gasoline and diesel is expected to cut prices by about 10 cents per litre for gas and four cents for diesel. However, for fleet operators, those savings will likely be offset almost immediately by the annual switch to more expensive summer fuel blends, which can add roughly the same cost per litre. As a result, fleets may not see any real drop in fuel expenses—at best, the tax break could help slow further price increases rather than reduce them.