Canada’s used vehicle market is stabilizing as supply improves and prices level off, according to new Q1 2026 data from CARFAX Canada.
The national average used vehicle listing price reached $31,907 in March, up 0.5% from February but down 2.3% compared with a year earlier, reflecting a shift toward more balanced market conditions.
Inventory is rising sharply. Listings increased 31.6% month-over-month in March and were up 3.1% year-over-year, reaching 235,577 units, the highest level since August 2025. The increase points to easing supply constraints heading into the spring selling season.
“What sets our Used Vehicle Market Insights apart is the sheer scale of data behind it — billions of North American vehicle records. That foundation allows us to deliver a level of market intelligence that is unmatched in the industry, providing automotive professionals with the clarity and confidence they need to make better-informed decisions,” said Shawn Vording, president of CARFAX Canada.
SUVs continue to dominate consumer demand. They account for 55.3% of used vehicle listings, up from 51.1% a year earlier, as buyers favour larger vehicles for capacity and perceived safety. Passenger cars now represent 27.0% of listings, down from 30.6% year-over-year, with average prices in that segment falling 4.3%.
Trucks and vans are holding their value with only slight year-over-year declines, while domestic full-size pickups including the Ford F-150, GMC Sierra 1500 and Ram 1500 continue to command elevated pricing even as supply normalizes.
The electric vehicle segment remains volatile. Used EV prices are down 6.5% year-over-year, narrowing the price gap with gas-powered vehicles to its lowest level since early 2025. Additional instability is expected as federal affordability programs roll out and new supply enters the market.
CARFAX Canada notes that while tariffs on Chinese EV manufacturers have been reduced to 6.1%, lower-cost models from major OEMs are not expected to arrive in significant volumes until 2027.
Regional disparities persist. Western provinces continue to record the highest average prices, driven by demand for trucks and SUVs and higher living costs, while Atlantic Canada and Quebec remain the most affordable markets. Atlantic provinces also recorded 4.5% year-over-year price growth.
