CARFAX Canada: Used Vehicle Prices Continue to Stabilize while Inventory Ramps Up

Used Vehicle Market Insights – June Overview

LONDON, Ontario--(BUSINESS WIRE)--As Canadians head into the summer months, the used vehicle market is facing increasing pressure, as economic conditions become more challenging nationwide.

The June CARFAX Canada Used Vehicle Market Insights Report reveals that while prices remain elevated compared to pre-pandemic levels, they have generally plateaued so far this year and have come down significantly from 2025.

In April, 30.9% of used vehicles listed for sale had reported damage, with an average listing price $7,464 lower than undamaged vehicles — a significant gap. This spread reflects the variability in how damage impacts value, influenced by both damage severity and vehicle type. While CARFAX Canada offers VIN-specific valuations that capture this variability at the individual vehicle level, the figures in this report are based on broad market estimates.

Used vehicle inventory is climbing fast, but not enough to outstrip levels seen last year. 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.

Although most buyers are seeing value in the market, this has yet to translate into sustained transaction growth. Used and new sales are off to a slow start this year, with demand continuing to be constrained by macroeconomic conditions and affordability pressures. While transactions have shown a modest rebound in recent months, overall volumes remain below year-ago levels.

Electric Vehicles

The EV market continues to show volatility, but consumer interest is building. Amongst Canadians planning to purchase a used vehicle in the next 12 months, 22% are considering a Battery Electric Vehicle (BEV). This demand is being driven by expanding infrastructure and higher gas prices, which reached an average of 178.8 cents per litre in April — the highest level for regular unleaded gas seen since July of 2022. But supply remains tight, with BEVs representing just 4% of all used listings and inventory heavily skewed towards higher-priced models.

With gas prices not anticipated to level off anytime soon and new, likely more affordable Chinese EVs arriving on Canadian soil this year — albeit in limited quantities — electric demand is expected to gain momentum. Some Chinese models from manufacturers like BYD, are expected to retail at a lower price point than the average price for a used EV today, helping to improve accessibility. CARFAX Canada research shows that while fuel savings are the number one driver for prospective EV buyers, high price tags remain the biggest barrier. For more EV insights, check out our full report: “What’s next for EVs, and how dealers can get ahead.”

Market Snapshot

Key Takeaways

• There were 254,881 used vehicle transactions in April 2026, up 1.2% month-over-month and down 7.2% year-over-year, signalling a modest rebound after recent declines, though demand remains below last year’s levels.
• Used inventory continues to build for the selling season, with a significant 21.6% month-over-month gain in April. However, this rise has not meaningfully eased longer-term supply constraints, with inventory levels staying essentially flat year-over-year.
• The national average used vehicle listing price has plateaued since February, showing a modest increase of 0.8% from March, and falling 3.8% from the same time last year.
• The average used EV listing price reached $40,893 in April, up 4.7% month-over-month after showing a downward trend since late 2025. Recent volatility is being driven by rising fuel costs and limited inventory.

CARFAX Canada Used Vehicle Market Insights arm the auto industry with the knowledge to decode market trends, sharpen buying and selling strategies, and navigate an increasingly complex vehicle marketplace with confidence.

For the latest trends and insights on the average price by vehicle condition, region, market segment, and vehicle type, view the full June CARFAX Canada Used Vehicle Market Insights Report here: https://www.carfax.ca/media/carfax-canada-used-vehicle-market-insights-2026-06

About CARFAX Canada

CARFAX Canada, a part of S&P Global (NYSE: SPGI), is Canada’s definitive source of automotive information, delivering vehicle history, valuation and service solutions. Drawing on billions of data records from thousands of sources, its products enable used vehicle buyers, sellers and vehicle service providers to make informed decisions. CARFAX Canada is dedicated to transparency and is trusted to provide vehicle history, valuation and service information to dealerships, vehicle manufacturers, consumers, service shops, major auctions, governments, insurance providers and police agencies.

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