How much used vehicles cost are as prices plateau

Used vehicle prices in Canada are showing signs of stabilization in 2026 after a period of sharp increases, while electric vehicle pricing remains more volatile, according to the latest market update from Carfax Canada.

The report found that the national average used vehicle listing price has largely plateaued since February, sitting at $31,619, a 0.8 per cent increase from March levels. On a year‑over‑year basis, however, prices are down 3.8 per cent ($1,245), reflecting a gradual correction from the elevated pricing seen in 2025.

Carfax Canada said that while prices remain higher than pre‑pandemic levels, the market has entered a more stable phase as consumer demand softens and affordability pressures persist.

However, electric vehicle pricing is moving on a different track. The average used EV listing price reached $40,893 in April, up 4.7 per cent month over month after declining through much of late 2025.

This recent volatility is being driven by a combination of rising fuel prices and limited supply, Carfax Canada said. With gasoline averaging 178.8 cents per litre in April — the highest level since July 2022 — demand for EVs is increasing, putting upward pressure on prices despite broader market softness.

However, supply remains constrained. Battery electric vehicles account for just 4 per cent of used listings, and inventory is heavily weighted toward higher‑priced models, limiting accessibility for many buyers.

The potential arrival of lower‑priced Chinese EVs later this year could begin to shift pricing dynamics, though volumes are expected to remain limited in the short term.

Inventory rising, but not enough to ease pressures

Used vehicle inventory rose sharply in April, increasing 21.6 per cent month over month as dealers prepared for the spring and summer selling season. Despite the recent increase, inventory levels remain essentially flat compared with last year, meaning supply constraints continue to influence pricing.

Carfax Canada attributed the tight supply to reduced new‑vehicle production earlier in the decade, which has resulted in fewer vehicles entering the used market, particularly from lease returns.

This balance between improving inventory and constrained long‑term supply is contributing to the current price plateau rather than driving significant declines.

Regional pricing trends uneven

Pricing trends vary across the country. British Columbia remains the most expensive used vehicle market at an average of $35,958, with Vancouver ($43,791) recording the highest average listing prices among major cities and posting a 14.3 per cent year‑over‑year increase.

While Ontario has among the lowest prices ($31,397 on average), Toronto has the second-highest average price at $37, 239.

The Atlantic region is the only area showing consistent upward pricing momentum, with prices rising 1.7 per cent month over month and 3.2 per cent year over year to sit at $29,191. Despite those gains, it’s the second lowest region in Canada, behind Quebec at $28,613.

Affordability shaping behaviour

While prices have stabilized, affordability continues to shape consumer behaviour. CARFAX Canada said many buyers still perceive value in the market, with 75 per cent of recent purchasers reporting they received good or excellent value. At the same time, 65 per cent said prices are at least somewhat reasonable.

However, that sentiment has not translated into stronger sales volumes. Used vehicle transactions remain down 7.2 per cent year over year, indicating that economic uncertainty and higher borrowing costs are continuing to constrain demand.

Looking ahead, Carfax Canada expects used vehicle pricing to remain relatively stable in the near term, supported by limited inventory but tempered by cautious consumer behaviour. Interest rates, economic uncertainty and upcoming trade negotiations under CUSMA are all expected to influence the market’s direction.