Canadians are paying a significant premium to drive used vehicles that have never been in a collision, according to a new report from CARFAX.
According to its June 2026 used vehicle market insights report, nearly one-third of used vehicles listed for sale in Canada had reported damage in April, with those vehicles carrying a steep resale discount.
The report found 30.9% of used vehicles listed for sale in April had reported damage. Those vehicles were listed for an average of $7,464 less than vehicles without reported damage. The price gap varies by vehicle, damage type and damage severity, but the broad market estimate shows reported damage remains a major factor in resale value.
The damage data comes as Canada’s used vehicle market shows mixed signals. There were 254,881 used vehicle transactions in April, up 1.2% from March but down 7.2% from April 2025.
Inventory rose 21.6% from March as dealers built supply for the selling season. However, inventory was essentially flat year-over-year, suggesting the market is still feeling the effect of earlier new vehicle production cuts and lower leasing volumes.
The national average used vehicle listing price reached $31,619 in April. That was up 0.8% from March, but down 3.8% from the same month last year.
Used vehicle prices are still above pre-pandemic levels, but the market has cooled. The national average listing price has mostly levelled off this year and was 3.8% lower in April than a year earlier.
Sport utility vehicles continued to take a larger share of the used market, accounting for a record 56% of all listings. All major vehicle segments posted year-over-year price declines in April, with passenger cars recording the steepest drop despite lower inventory than a year earlier.
Regional pricing remained uneven. British Columbia had the country’s most expensive used vehicle market, with Vancouver posting the highest average listing price among major cities. Vancouver’s average listing price rose 14.3% year-over-year.
The Atlantic region was the only region to record both monthly and annual price growth. Prices there rose 1.7% from March and 3.2% from April 2025. Even with those gains, the region remained Canada’s second most affordable used vehicle market, behind Quebec.
Electric vehicles moved against the broader price trend. The average used EV listing price reached $40,893 in April, up 4.7% from March after trending downward since late 2025.
The report tied the EV price increase to higher fuel costs and limited supply. Regular unleaded gasoline averaged 178.8 cents per litre in April, the highest level since July 2022.
Consumer interest in used EVs is growing, but supply remains thin. Among Canadians planning to buy a used vehicle in the next 12 months, 22% said they were considering a battery electric vehicle. Battery electric vehicles represented just 4% of used listings.
Used EV inventory also remained concentrated in higher-priced models. Tesla vehicles accounted for 60.4% of used EV inventory in April, led by the Model 3 and Model Y. More affordable options, including the Nissan LEAF, remained limited.
The report draws on CARFAX Canada proprietary data, including vehicle history records, listing activity and consumer surveys, with analysis supplemented by S&P Global Mobility data.
