Market Snapshot

Key Takeaways

• There were 254,881 used vehicle transactions in April 2026, up 1.2% month-over-month and down 7.2% year-over-year, signalling a modest rebound after recent declines, though demand remains below last year’s levels.
• Used inventory continues to build for the selling season, with a significant 21.6% month-over-month gain in April. However, this rise hasn’t meaningfully eased longer-term supply constraints, with inventory levels staying essentially flat year-over-year.
• The national average used vehicle listing price has plateaued since February, showing a modest increase of 0.8% from March, and falling 3.8% from the same time last year.
• The average used EV listing price reached $40,893 in April, up 4.7% month-over-month after showing a downward trend since late 2025. Recent volatility is being driven by rising fuel costs and limited inventory.

CARFAX Canada Insights

As we head into the summer months, the used vehicle market is facing increasing pressure, as economic conditions become more challenging.

While prices remain elevated compared to pre-pandemic levels, they have generally plateaued so far this year and have come down significantly from 2025. Canadian car buyers are starting to take notice. In our latest survey of Canadians who have purchased a used vehicle in the last 12 months, 75% believe they received good or excellent value for money and 65% found overall used prices to be at least somewhat reasonable.

Although most buyers are seeing value in the market, this has yet to translate into sustained transaction growth. Used and new sales are off to a slow start this year, with demand continuing to be constrained by macroeconomic conditions and affordability pressures. While transactions have shown a modest rebound in recent months, overall volumes remain below year-ago levels.

Used inventory is climbing fast, but not enough to outstrip levels seen last year. Supply remains constrained due to reduced new vehicle production earlier in the decade and the associated follow-on effect of lower leasing volumes in the same period.

Electric Vehicles

The EV market continues to show volatility, but consumer interest is building. Amongst Canadians planning to purchase a used vehicle in the next 12 months, 22% are considering a Battery Electric Vehicle (BEV). This demand is being driven by expanding infrastructure and higher gas prices, which reached an average of 178.8 cents per litre in April — the highest level for regular unleaded gas seen since July of 2022. But supply remains tight, with BEVs representing just 4% of all used listings and inventory heavily skewed towards higher-priced models.

With gas prices not anticipated to level off anytime soon and new, likely more affordable Chinese EVs arriving on Canadian soil this year — albeit in limited quantities — electric demand is expected to gain momentum. Some Chinese models from manufacturers like BYD, are expected to retail at a lower price point than the average price for a used EV today, helping to improve accessibility. CARFAX Canada research shows that while fuel savings are the number one driver for prospective EV buyers, high price tags remain the biggest barrier. For more EV insights, check out our full report: “What’s next for EVs, and how dealers can get ahead.” 

Looking Ahead

Consumers remain cautious amid ongoing economic uncertainty, and this restraint is likely to persist in the near term, particularly as the Bank of Canada continues to hold its key interest rate at 2.25% as of June.

Broad market uncertainty is also being reinforced by the upcoming Canada-United States-Mexico Agreement (CUSMA) review this summer. With negotiations already underway, the outcome will shape both new and used vehicle markets. A favourable result for Canada should help restore more consumer confidence and bring more stabilization to the market.

Used Vehicle Transactions

Used sales are down 7.2% year-over-year. April marks a modest rebound in transaction activity, with sales increasing month-over-month following declines earlier in the year, though overall volume remains below year-ago levels.

Used Vehicle Inventory

Inventory is building but remains below levels seen last year.  SUVs now account for a record 56% share of all listings.

National Average Listing Price

Used vehicles with a model year of 2000 or newer, listed at prices between $3,000 and $150,000.

Average Price by Region

Affordability remains varied across Canada. British Columbia is home to the country’s most expensive used car market, with Vancouver holding the highest average listing price among all major cities and increasing 14.3% year-over-year. The Atlantic region is the only part of the country with pricing growth both month-over-month (1.7%) and year-over-year (3.2%). Even with this upward trend, however, the Atlantic region remains the second most affordable market in the country, just behind Quebec.

Average Price by Vehicle Condition

In April, 30.9% of used vehicles listed for sale had reported damage, with an average listing price $7,464 lower than undamaged vehicles — a significant gap. This spread reflects the variability in how damage impacts value, influenced by both damage severity and vehicle type. While CARFAX Canada offers VIN-specific valuations that capture this variability at the individual vehicle level, the figures in this report are based on broad market estimates.

Average Price by Market Segment

In April, all market segments saw pricing declines year-over-year, with passenger cars losing the most ground despite reduced inventory compared to the same time last year.

Average Price by Fuel Type

After trending downward since late 2025, EV prices are rising again. Renewed interest, driven by rising gas prices and limited inventory, is pushing prices back up.

Most-Searched Vehicle Values by CARFAX Canada: Average Price

The used vehicle models with the most CARFAX Canada valuations requested in April.

All top-searched models have declined year-over-year. The sedans — Honda Civic, Hyundai Elantra, and the Toyota Corolla — saw some of the most significant declines as more consumers turn their attention to SUVs offering greater capacity and safety.

Most-Searched EV Values by CARFAX Canada: Average Price

Higher-priced Tesla models dominate the used EV market, accounting for 60.4% of all EV inventory in April. The Model 3 and Model Y make up the largest share despite year-over-year declines in volume, while more affordable options like the Nissan LEAF remain limited. This imbalance in supply is keeping overall EV prices elevated and more price-sensitive buyers on the sidelines.

This report draws on CARFAX Canada proprietary data, including vehicle history records, listing activity, and consumer surveys. Analysis is supplemented with data from S&P Global Mobility. As underlying data sets are continuously updated, results reflect the most current and complete data available at the time of analysis and may differ from prior reporting. This report is provided for general informational purposes only and does not constitute financial, investment, or business advice. While CARFAX Canada strives for accuracy, the information is provided “as is” without warranty of any kind, whether express or implied, including as to accuracy, completeness, or fitness for a particular purpose. Forward-looking statements reflect current assumptions and are subject to risks and uncertainties, and actual results may differ materially. © 2026 CARFAX Canada. All rights reserved.