Prices, Supply, Dealer Trends and Buying Insights
DesRosiers Automotive Consultants and the Used Car Dealers Association continue to monitor the rapidly evolving Canadian used vehicle market. As the industry moves through 2026, the market shows signs of stabilization following several years of volatility caused by supply shortages, pandemic disruptions, and rising vehicle costs.
Canada’s used car market remains one of the most important segments of the automotive industry, serving millions of consumers looking for affordable transportation. However, pricing levels, inventory sourcing, and consumer behaviour are continuing to shift.
Used Car Prices in Canada Remain Historically High
Used car prices in Canada remain significantly higher than historical averages, although price increases have slowed compared with the dramatic growth seen between 2021 and 2023.
According to the AutoTrader Canada Price Index, the average price of a used vehicle in Canada was approximately $35,201 in 2025. Prices varied depending on vehicle category, region and age, but the overall trend shows that used vehicles remain far more expensive than they were prior to the pandemic.
Several factors continue to support higher used vehicle prices:
• limited used vehicle inventory
• higher new vehicle prices
• strong consumer demand
• extended vehicle ownership cycles
At the same time, the average price of a new vehicle in Canada exceeded $63,000 in 2025, which continues to push many buyers toward the used vehicle market.
Used Vehicle Supply Remains Tight
Inventory shortages remain one of the most important issues affecting used car dealers in Canada.
The supply of used vehicles available to dealers was heavily impacted by reduced new vehicle sales between 2020 and 2023, when global semiconductor shortages significantly slowed production. Because fewer new vehicles were sold during those years, fewer vehicles are now entering the used market through trade ins or lease returns.
Market analysts at DesRosiers Automotive Consultants note that the impact of this supply disruption will likely continue through 2026 and potentially into 2027.
Additional supply pressure is also coming from cross border vehicle exports, with some Canadian used vehicles being exported to the United States due to favorable exchange rates and pricing differences.
Wholesale Used Vehicle Prices Showing Early Decline
While retail used vehicle prices remain elevated, the wholesale auction market has started to soften slightly in early 2026.
Industry reports from Canadian Black Book show modest declines in wholesale values across several vehicle segments, particularly vans and light trucks.
This softening suggests that supply conditions are gradually improving. However, the impact on retail pricing may take time to appear because dealers must still manage acquisition costs, transportation costs and reconditioning expenses.
Demand for Used Cars in Canada Remains Strong
Demand for used vehicles remains robust across Canada, particularly in urban markets such as Toronto, Vancouver, Calgary and Montreal.
Several economic factors continue to drive consumer demand for used cars:
• high cost of new vehicles
• increased interest rates on auto loans
• growing population and immigration
• affordability pressures on households
Many Canadian buyers are also keeping their vehicles longer than before, which reduces trade ins and further tightens supply in the used vehicle market.
Used Electric Vehicles Entering the Market
Another emerging trend in the Canadian used car market is the gradual increase in used electric vehicles.
Although the majority of used vehicle sales still consist of gasoline powered vehicles, early electric vehicle models are now beginning to enter the used market as leases expire and owners trade them in.
Dealer surveys conducted with the Used Car Dealers Association indicate that used electric vehicles currently represent a small portion of sales but are slowly increasing each year.
Buying Used Cars in Canada: Consumer Trends
Consumers purchasing used vehicles in Canada are becoming increasingly informed and price conscious. Online research has become a key part of the vehicle buying process, with many buyers comparing listings across multiple platforms before making a purchase.
Common trends in used car buying behaviour include:
• longer financing terms
• increased online vehicle research
• expanded geographic search for better deals
• higher demand for reliable SUVs and pickup trucks
Digital marketplaces such as AutoTrader Canada continue to play a major role in connecting buyers with used vehicle dealers across the country.
Market Outlook for 2026 and Beyond
Industry analysts expect the Canadian used vehicle market to gradually stabilize in the coming years as supply improves.
Forecasts suggest:
• used vehicle depreciation may return closer to historical averages
• inventory levels should slowly improve as new vehicle production normalizes
• consumer demand will remain strong due to high new vehicle prices
However, many experts believe that used car prices will remain structurally higher than pre pandemic levels due to the increased cost of producing new vehicles and ongoing global supply chain adjustments.
The Canadian used vehicle market is transitioning into a more balanced phase after several years of disruption. While prices remain elevated and supply constraints persist, early signs of stabilization are beginning to appear.
Used car dealers across Canada continue to adapt to evolving market conditions by improving sourcing strategies, expanding online sales channels, and responding to shifting consumer preferences.
As affordability continues to shape vehicle purchasing decisions, the used vehicle market will remain a critical component of Canada’s automotive landscape.
DesRosiers Automotive Consultants. (2026). Canadian automotive market insights and industry analysis.
Used Car Dealers Association. (2026). UCDA industry resources and dealer market updates.
AutoTrader Canada. (2026). Canadian automotive marketplace and vehicle price index.
Canadian Black Book. (2026). Vehicle valuation data and automotive analytics.