Two significant new car market changes landed in the same week — and both of them have direct implications for how dealers should think about used inventory, trade-in values, and consumer demand over the next two to three years.
Ford Is Discontinuing the Escape
Ford announced it's discontinuing the Escape — one of its best-selling compact crossovers and the brand's second most affordable model after the Maverick pickup. The decision puzzles dealers and analysts alike. Affordability is already a sore point for consumers, and removing an entry-level option doesn't address that problem. The leading theory is that Ford is freeing up factory capacity for something new — possibly to accelerate production elsewhere — but no replacement product has been announced.
For the used car market, the Escape discontinuation creates a predictable dynamic: buyers who want an Escape will have to find one used. That doesn't immediately add enormous demand pressure, but it does mean that clean, low-mileage used Escapes will eventually become scarcer. Dealers with access to good Escape trade-ins right now may be looking at a used inventory segment with more staying power than the model's discontinuation would initially suggest.
History is consistent on this: discontinued models see a short-term bump in used demand as buyers who want them scramble for remaining examples. The Escape has a large installed base in Canada. It's not exotic, but it's trustworthy, and trustworthy sells.
Stellantis Cancels Its Entire PHEV Lineup
Stellantis cancelled its entire plug-in hybrid lineup in one move — the Jeep Wrangler 4xe, Grand Cherokee 4xe, Chrysler Pacifica PHEV, and Alfa Romeo Tonale PHEV are all gone. The company is pivoting toward regular hybrids and extended-range EVs instead, betting that consumers want electrification without the complexity and cost of a plug-in powertrain.
For dealers, this creates an interesting used market moment. Buyers who specifically want a plug-in Wrangler or Pacifica can no longer buy new. Demand for used examples of those vehicles — which were already popular in their segments — shifts entirely to the used market. The Wrangler 4xe in particular attracted a distinct buyer: someone who wants off-road capability with some EV efficiency. There is no new option for them now. Used 4xe examples are the only path.
If you've been passing on used 4xe Wranglers because PHEV vehicles felt niche or uncertain, consider re-evaluating. The demand base is real, it's not going away, and supply is now locked.
The Weekly Wholesale Numbers
The week ending January 10th saw the overall market down 0.41%. Cars dropped 0.28% and trucks fell 0.52%. Full-size cars were the biggest losers in the car segment, down over 1.5%. Sub-compact crossovers and full-size crossovers led declines on the truck side. Compact luxury crossovers and full-size vans held up best.
Retail inventory sat around 191,000 vehicles — slightly lower than recent months — at an average of $36,700. Auction conversion averaged 51%, with rates as high as 95% in the best lanes. That 95% is worth underlining: in the right lane with the right vehicle, the market is still highly active. The overall 51% figure shouldn't be read as a market in trouble — it reflects the wide variation in quality and pricing across the auction floor.
2025 Canadian New Car Sales: The Full Year in Context
Canadian new car sales for 2025 came in up about 2% year-over-year after a stronger-than-expected first half — tariff threats drove buyers to act early, pulling forward demand. December was weaker, dropping about 7.3% versus the prior year, but the full-year number staying positive is a decent result given everything that happened. It confirms the underlying demand environment is stable, even if the monthly read is noisy.
Other Industry Moves Worth Watching
GM disclosed a $7.1 billion USD charge related to its EV strategy pivot — a massive write-down that signals how expensive the full EV transition has been for legacy manufacturers. Volvo released details on its upcoming EX60 electric crossover with up to 810 km of range and ultra-fast charging. Sony-Honda's EV brand Afeela premiered both a new SUV concept and its Afeela 1 sedan at CES.
And the Ram TRX nameplate is coming back as the SRT TRX — now with 777 horsepower via a supercharged V8. This is the high end of the truck market where enthusiasts pay regardless of economic conditions. Clean used examples of the original TRX are already carrying a premium as scarcity around a limited-run model drives collector interest.
The Dealer Takeaway
When a popular model gets discontinued and a segment of vehicles effectively disappears from new car lots, it creates opportunity in the used market — sometimes immediately, sometimes over time. The Escape and the Stellantis PHEVs are both examples of this dynamic playing out simultaneously.
The dealers best positioned here are the ones who recognize these shifts early, acquire well-maintained examples while they're still reasonably priced, and have them ready when demand catches up with supply. The auction floor is already slower on average. The opportunity is in knowing which specific vehicles are worth chasing.