Canada’s used vehicle market continued to stabilize in June as inventory increased and average listing prices remained below year-ago levels, according to new data from CARFAX Canada.
National average used-vehicle listing prices increased 0.2% month-over-month in June but remained 4.7% below June 2025 levels. At the same time, inventory increased 15.5% from May and 2.5% year-over-year, giving buyers more selection heading into the summer selling season.
Used-vehicle transaction activity also improved compared with May, with 277,361 transactions recorded in June, up 1.3% month-over-month. However, transactions remained 2.9% below the same month last year. For the first half of 2026, approximately 1.49 million used vehicles changed hands, down 4.2% from the first half of 2025.
CARFAX Canada said the combination of higher inventory and relatively stable pricing suggests the market is moving away from the supply-constrained conditions seen in recent years.
National used-vehicle prices have remained within a relatively narrow range of approximately $31,000 to $31,500 over the past five months. While increased supply has helped balance the market, inventory remains constrained enough to limit significant downward pressure on prices.
For the collision repair industry, vehicle damage history continues to play a significant role in used-vehicle values. Approximately 32% of inventory carried a reported damage record in June, with vehicles carrying damage histories continuing to trade at a meaningful discount.
Regional pricing also varied considerably. British Columbia recorded the highest average listing price among provinces at $36,655, while Quebec remained the most affordable major provincial market at $28,582. Vancouver was the most expensive major market at $44,995.
The used EV market continued its recovery from early-2026 lows. Average EV listing prices reached $42,834 in June, up 1.1% from May but down 1.7% year-over-year. Inventory also increased, although supply remained concentrated among higher-priced Tesla models.
Among the most-searched vehicle models, the Ford Escape recorded the largest year-over-year decline at 7.6%, followed by the Toyota Corolla at 6.4%, Honda CR-V at 6.3% and Honda Civic at 5.8%. The Toyota RAV4 was the exception, with its average value increasing 4.3% year-over-year.
CARFAX Canada said affordability, household costs, financing expenses and ongoing Canada-U.S. trade uncertainty are expected to continue influencing used-vehicle demand through the remainder of 2026.
