March 2026 vs 2025
since Feb 27, 2026
December 2025 low
What’s Driving Gas Prices Right Now
The cause is primarily geopolitical. Ongoing conflict in the Middle East has severely disrupted global oil supply, halting most tanker traffic and sending oil prices soaring worldwide. According to the Canadian Automobile Association, gas prices are up 30% since February 27, with Canada averaging around $1.77 per litre, an increase of 57 cents compared to the December 2025 low. British Columbians are paying the most at $2.00/litre, and Albertans the least at $1.63/litre.
Impact on Total Auto Sales in Ontario and Across Canada
The damage to the market is already measurable. DesRosiers Automotive Consultants estimates 170,000 vehicles were sold across Canada in March, down 8.2% from a year earlier. Managing partner Andrew King said high gas prices have added even more financial stress for Canadian consumers, on top of yearlong tariff-related headwinds. On a quarterly basis, 406,000 vehicles were sold in Q1 2026, down 4.4%.
“High gas prices have added even more financial stress for Canadian consumers, in addition to yearlong tariff-related economic headwinds.”
Andrew King, Managing Partner — DesRosiers Automotive Consultants, April 2026For Ontario used car dealers, this data signals a critical pivot point. Fewer new car sales means more buyers entering the used car market in Ontario, many of whom will need help securing financing.
How Ontario Used Car Buyers Are Shifting
Used vehicle prices across Ontario are expected to remain elevated, as limited inventory, high new vehicle costs, and lingering trade uncertainty keep used cars in high demand. When consumers in Mississauga, Hamilton, Brampton, Kitchener, or anywhere across Southern Ontario cannot afford a new car or are concerned about economic uncertainty, they gravitate to the used car market. That is your dealers’ core opportunity.
Used car dealerships in Ontario that have flexible financing partners in place are best positioned to capture this growing pool of buyers who need a reliable vehicle but cannot access traditional bank loans.
Analysts began noting a decline in demand for used SUVs even before gas prices soared across Ontario. That demand may fall further if the conflict continues, keeping fuel prices high. In Ontario specifically, used truck prices have dropped more than in any other region in Canada. Softness in the export market, driven by tariff concerns and cross-border uncertainty, is applying downward pressure locally. For buyers in the market for a capable pickup, this represents a real window of opportunity.
Search volume for electric vehicles on the online car retailer Clutch rose 94% from January to late March across Canada. However, EV interest is not necessarily converting to sales at scale, as the upfront cost barrier remains real. Two in ten Canadians say they are more likely to purchase a hybrid (20%) or electric (18%) car for their next vehicle, but nearly one-third say gas prices had no impact on whether they would purchase an alternative fuel vehicle, partly due to the sparse options available in the used car market.
Used hybrids such as the Civic Hybrid, RAV4 Hybrid, Corolla Hybrid, and Niro Hybrid are becoming highly sought-after across dealerships in Hamilton, Mississauga, Kitchener, London, and Barrie. Inventory of those models commands stronger pricing, and buyers are motivated.
Gas prices are visible in a way that very few other costs are, and that visibility gives them a disproportionate effect on how Canadians think about the cost of living. Used car buyers across Ontario are entering dealerships more financially stressed and more likely to need alternative financing solutions beyond what traditional banks offer.
The last time Canada faced a significant rise in gas prices was in 2022 at the start of the Ukraine war, when a AAA survey noted that 59% of drivers said they would change their driving habits if gas rose above a certain threshold. The behavioural response this time is expected to be similar or stronger, meaning more budget-conscious buyers are heading to used car lots across Ontario right now.
Frequently Asked Questions
Rising gas prices push Ontario buyers away from new vehicles and toward the used car market, where affordability is the priority. Demand for fuel-efficient used cars increases, while demand for larger trucks and SUVs softens. Buyers also arrive more financially stressed, making flexible financing solutions more important for Ontario used car dealerships.
Used car prices in Ontario are expected to remain elevated in 2026 due to limited inventory, high new vehicle costs, and ongoing trade uncertainty. While used truck prices in Ontario have dipped due to softer export demand, fuel-efficient vehicles and hybrids continue to command strong pricing at dealerships across Southern Ontario.
Fuel-efficient models are leading demand across Ontario dealerships. Used hybrids such as the Toyota RAV4 Hybrid, Honda Civic Hybrid, Toyota Corolla Hybrid, and Hyundai Niro Hybrid are among the most sought-after vehicles on used car lots in Hamilton, Mississauga, Brampton, Kitchener, London, and across Southern Ontario.
Used truck prices in Ontario have dropped more than in any other Canadian region due to a combination of softer domestic demand driven by high fuel prices and reduced cross-border export activity caused by tariff concerns and trade uncertainty between Canada and the United States.
- BNN Bloomberg — Auto sales fell 8.2% in March (DesRosiers) — bnnbloomberg.ca
- The Globe and Mail — Gas prices: crude awakening — theglobeandmail.com
- Rates.ca — 30% of Canadians interested in EVs but cost remains a barrier — rates.ca
- Clutch Used Car Pricing Report — March 2026 used market data — clutch.ca
- CTV News — Rising gas and diesel prices deliver multiple negative economic impacts — ctvnews.ca
Ontario Underwriters serves used car dealerships across Southern Ontario including Hamilton, Mississauga, Brampton, Kitchener, London, Windsor, Barrie, Oshawa, St. Catharines, Cambridge, Guelph, Burlington, Oakville, Markham, Vaughan, and Toronto. Visit on-u.org or call (437) 345-4477.
Ontario Underwriters Inc. | Southern Ontario’s Used Car Finance
This newsletter is intended for used car dealer partners and prospective dealer partners in Southern Ontario.