CARFAX Canada’s June Used Vehicle Market Insights Report reveals that prices have plateaued and have come down significantly from 2025, despite remaining elevated compared to pre-pandemic levels.
According to CARFAX, “in April, 30.9% of used vehicles listed for sale had reported damage, with an average listing price $7,464 lower than undamaged vehicles.” That month, there were 254,881 used vehicle transactions, an increase of 1.2% month-over-month and a decrease of 7.2% year-over-year.
The report noted that the national average used vehicle listing price has increased 0.8% from March, and fell 3.8% from the same time last year. Currently, used vehicles with a model year of 2000 or newer have an average listing price between $3,000 and $150,000.
While used vehicle inventory is climbing quickly, at a 21.6% month-over-month gain in April, it is still not enough to outstrip last year’s levels, as “supply remains constrained due to reduced new vehicle production earlier in the decade and the associated follow-on effect of lower leasing volumes in the same period,” said the report.
Used and new sales are gradual because demand is constrained by macroeconomic conditions and affordability pressures; despite a modest rebound in transactions in recent months, overall volumes remain below last year’s levels.
Consumer interest in the EV market is increasing, and 22% of Canadians who are planning to purchase a used vehicle in the next 12 months are considering a Battery Electric Vehicle. Expanding infrastructure and higher gas prices are driving demand, as the average price of gas in April was 178.8 cents per litre, which CARFAX notes is the “highest level for regular unleaded gas seen since July of 2022.” However, supply is scarce: BEVs represent only 4% of all used listings.
EV demand is expected to increase with Chinese EVs arriving in Canada, with BYD retailing EVs at a lower price point than the average price for a used EV. According to CARFAX, its research shows that “while fuel savings are the number one driver for prospective EV buyers, high price tags remain the biggest barrier.” In April, the average used EV listing price was $40,893, a 4.7% month-over-month increase.
The complete report insights can be found here.
