Article Summary
Canadian car buyers are increasingly prioritizing affordability and practical vehicles in 2025 due to higher borrowing costs, tariffs, and economic pressures, with luxury vehicle searches down 11 percent year-over-year and mainstream models like the Ford F-150 and Toyota RAV4 dominating purchase decisions.
- Luxury vehicle searches declined 11 percent year-over-year as financial pressures reshape Canadian shopping habits
- New vehicle prices dropped almost 3 percent to approximately $63,665 in November, reflecting supply improvements
- Top-selling vehicles remain practical models: Ford F-150, Toyota RAV4, Honda CR-V, and Honda Civic lead both search and sales lists
- Electric vehicle searches increased to 9 percent of all activity, though interest among non-EV owners eased to 42 percent
- Used vehicle inventory is rebuilding after tight years and expected to remain constrained until mid to late 2027
Toronto, Ontario -- Canadians are leaning toward practical and affordable vehicles in 2025 as financial pressures redefine what many shoppers consider feasible, according to new data from AutoTrader.
AutoTrader reports that searches for luxury vehicles are down 11 percent year-over-year. The company cites higher borrowing costs, volatile pricing, supply constraints and global tariffs that are raising the cost of many imported models. Those factors are making premium vehicles harder to justify and steering buyers toward more attainable choices.
“Drawing on the millions of searches and listings that move through the marketplace each year, we capture the trends defining Canadian vehicle shopping,” said Thomas Krausse, chief marketing officer at AutoTrader. “After a year of significant change in the Canadian automotive market, it’s no surprise that this year’s data highlights affordability as a key driver of Canadians’ vehicle choices. Even as shoppers browse aspirationally, what ultimately ends up in their driveways tends to be far more grounded.”
The Ford F-150 tops both the top searched and top sold lists, with the Toyota RAV4, Honda CR-V and Honda Civic also ranking prominently. AutoTrader notes the lists remain largely unchanged from last year, suggesting steady demand for dependable, mainstream vehicles. Performance models such as the Ford Mustang, Chevrolet Corvette and Porsche 911 attract strong online attention but do not appear on the top sold list.
Price trends in the release reinforce the shift toward practicality. New vehicle prices are down almost three percent year-over-year, settling at about $63,665 in November. Used vehicle prices average $35,494, up just over two percent from one year earlier but showing signs of stabilizing as inventory improves. AutoTrader says new prices are steadier because supply is stronger, while the used market has been more sensitive to tariffs and demand.
New vehicle inventory is generally healthy, though availability varies by brand. Used inventory is rebuilding after several tight years and is supported by higher new car sales, more trade-ins, reduced exports and a growing number of younger vehicles returning to the market. Even so, AutoTrader expects used supply to remain constrained until mid to late 2027.
Electrified vehicles show shifting patterns. Electric vehicle searches account for nine percent of all activity on AutoTrader in 2025, up from eight percent in 2024. Interest among non-EV owners is easing, with 42 percent saying they would consider an electric model, down from 46 percent last year. Hybrid models remain the strongest part of the segment, with nearly three-in-five shoppers open to a hybrid.
SUVs continue to hold broad appeal as buyers look for space, comfort and winter stability.
