Canadian new-vehicle sales rise in 2025 as affordability pressures shape market

Canada’s franchised new-vehicle dealership industry saw sales growth in 2025, but economic uncertainty, trade-related supply variations and affordability challenges continued to influence consumer behaviour, according to the Canadian Automobile Dealers Association’s (CADA) 2025 CADA Data Report.

The report found 1,897,055 new vehicles were sold in Canada in 2025, an increase of two per cent from the previous year. However, the average amount financed for a new vehicle climbed to $57,981, while hybrid vehicle registrations continued to increase and battery-electric vehicle registrations declined.

“The increasingly volatile commercial and trade environment has introduced new uncertainty for dealers, manufacturers and consumers alike,” said Tim Reuss, president and CEO of CADA. “Reliable market data helps businesses adapt, informs policymakers and highlights the significant economic contribution made by Canada’s franchised new-vehicle dealers.”

The report, which draws on data from Statistics Canada, J.D. Power, NCM Associates, Canadian Black Book, DesRosiers Automotive Consultants and MNP, examined trends affecting Canada’s franchised new-vehicle dealership sector, including vehicle ownership, purchasing decisions and market conditions.

“Affordability is one of the defining themes across the automotive retail sector, and nearly every dataset in this report reflects that,” said Charles Bernard, chief economist at CADA. “Elevated vehicle prices, financing costs and household budget pressures are prompting consumers to keep vehicles longer, focus more closely on monthly payments and seek greater value throughout the ownership experience.”

CADA said the findings highlight how consumers are adapting to a changing automotive market by placing greater focus on affordability, financing considerations and overall ownership value.