Automotive equipment rentals and leasing, 2024

Released: 2026-03-09

Moderate revenue growth in automotive equipment rental and leasing offset by rising operating expenses in 2024

The automotive equipment rental and leasing industry group generated $10.7 billion in operating revenue in 2024, up 4.3% from 2023, reflecting sustained but slower demand for rented and leased motor vehicles. This industry group includes establishments primarily engaged in renting or leasing vehicles, such as passenger cars, passenger vans, trucks, truck tractors, buses, semi-trailers, utility trailers and recreational vehicles, without drivers.

Ontario (+3.6%) recorded the largest increase in operating revenue in dollar terms in 2024, followed by Alberta (+5.7%) and Quebec (+4.9%). Meanwhile, Manitoba (-2.7%) was the lone province to post a decline.

In 2024, prices for the rental of passenger vehicles fell 11.5%, declining from the elevated levels observed in 2022 and 2023, when supply chain shortages limited the availability of new motor vehicles. Despite the decrease, prices in 2024 were 29.8% higher than in 2019.

Operating expenses for the industry group increased 10.0% in 2024 to $9.3 billion. Amortization and depreciation remained the largest component of operating expenses, accounting for 30.1%. Amortization and depreciation expenses accelerated, as vehicle fleet sizes continued to expand and the residual value of vehicles decreased, consistent with a 4.4% decline in used vehicle prices in 2024. The cost of goods sold (20.3%) was the second-largest operating expense item, followed by salaries, wages, commissions and benefits (14.4%).

Salaries, wages, commissions and benefits grew 5.3% in 2024 compared with the previous year. This rise coincided with a 2.6% increase in employment in the automotive equipment rental and leasing industry group, suggesting that higher staffing levels contributed to the growth in labour-related expenses.

The operating profit margin fell from 17.6% in 2023 to 13.0% in 2024. This decline brought the operating profit margin back to levels observed before the COVID-19 pandemic, following three consecutive years of historically high profit margins.

In 2024, 57.3% of sales across the automotive equipment rental and leasing industry group were to businesses, while 39.0% were to individuals and households. Sales to governments, not-for-profit organizations and public institutions accounted for 2.4% of sales, while sales outside Canada represented 1.3%.

E-commerce sales accounted for 39.9% of total sales in 2024, up from 38.9% in 2023.

Outlook for 2025 

Indicators for 2025 are generally soft for the automotive equipment rental and leasing industry group. While tourism indicators suggest growing demand for vehicle rentals, fewer visitors to Canada from the United States may limit operating revenue growth.

Tourism-related demand for rental vehicles increased 3.7% in the first three quarters of 2025, compared with the same period in 2024. This increase was entirely due to stronger domestic demand (+6.0%), as foreign demand fell 2.9% over the same period.

International arrivals to Canada by air with an overnight stay fell 1.7% in 2025 compared with the previous year. Fewer visitors to major airports such as Toronto Pearson International Airport (-2.3%) and Montréal-Trudeau International Airport (-4.0%) may hinder vehicle rental revenue.

Contact information

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