CARFAX Canada: Used Car Prices Level Off as Inventory Ramps Up in the First Half of 2026

Used Vehicle Market Insights – Mid-Year Overview

LONDON, Ontario--(BUSINESS WIRE)--CARFAX Canada releases its Mid-Year Used Vehicle Market Insights Report to help dealers and the auto industry make more confident decisions about vehicles and refine their buying and selling strategies based on current market trends.

The used vehicle market continues to normalize with inventory ramping up over the last two months, contributing to a more stable pricing landscape and giving consumers more options when shopping for used vehicles.

“Dealers who appreciate the complex variables of today's used vehicle marketplace and are gathering insights to better understand trends and what they are signaling are better positioned to meet their sales performance goals by acquiring pricing and managing inventory with significant scrutiny,” said Shawn Vording, President of CARFAX Canada. “Acquiring inventory is harder than ever. Acquiring the right inventory is a full-time job.”

The Mid-Year CARFAX Canada Used Vehicle Market Insights Report reveals that used vehicle sales remain below 2025 levels but have continued to recover from the slower start in 2026. Read the full Mid-Year CARFAX Canada Used Vehicle Market Insights Report here: https://www.carfax.ca/media/carfax-canada-used-vehicle-market-insights-2026-08

Market Snapshot

Canada’s used vehicle market continued to stabilize through June 2026, with pricing largely holding steady and inventory becoming more available over the course of the summer selling season.

Key Takeaways

• In June, there were 277,361 used vehicle transactions, up 1.3% month-over-month¹ and down 2.9% year-over-year. While demand remains softer than last year, the year-over-year decline is notably smaller than many of the declines observed earlier in the year.
• For the first half of 2026, used vehicle transactions totaled approximately 1.49 million units, down 4.2% compared to the first half of 2025, indicating that demand continues to recover gradually but remains below last year's pace.
• National average listing prices increased modestly month-over-month (+0.2%) but remained below last year’s levels (-4.7%), reinforcing the broader theme of gradual price normalization.
• Inventory growth accelerated again in June, rising 15.5% month-over-month and 2.5% year-over-year, providing buyers with more selection than earlier in the year.
• Vancouver remains Canada's most expensive used vehicle market, with average listing prices surpassing $44,995 (+10.2% YoY), while Quebec continues to offer the most affordable pricing among major provinces. Atlantic Canada is among the regions showing year-over-year price growth.

Affordability concerns, elevated cost of living, and broader economic uncertainty continue to constrain demand, though increasing inventory levels and stabilized vehicle prices are helping support transaction volumes.

National Average Listing Price

After declining throughout 2025, pricing has largely stabilized in 2026. The last five months have remained within a relatively narrow range near $31,000–$31,500, with June reporting an average listing price of $31,487 for used vehicles with a model year of 2000 or newer.

This plateau suggests that increasing inventory is contributing to a more stable market environment, while days supply remains in check enough to limit significant downward pricing pressure.

Used Vehicle Inventory

Used vehicle inventory expanded sharply heading into summer, representing the largest inventory level observed so far in 2026 and marking a significant increase from May.

The SUV segment reached another record share of total inventory, reflecting continued consumer preference toward larger vehicles.

Although inventory growth has improved buyer choice, supply remains influenced by the prolonged effects of vehicle production disruptions and lower lease volumes from previous years.

Electric Vehicles

Used EV prices continued rising in June, reversing much of the decline observed through late 2025 and early 2026. The used EV market remains one of the most dynamic segments of the industry, with average listing prices increasing to $42,834 in June.

Consumer interest in used EVs continues to improve, supported by growing model availability and increasing market familiarity, despite EV inventory remaining concentrated among premium vehicles.

Looking Ahead

The ultimate questions are: will used inventory levels continue to increase, and will consumer demand decline further caused by ongoing affordability pressures from elevated cost of living, economic uncertainty, and ongoing Canada-U.S. trade and CUSMA-related negotiations. If inventory grows and demand declines, dealers that react quickly will lessen the impact of a market correction.

For the latest trends and insights on the average price by vehicle condition, region, market segment, and vehicle type, view the full Mid-Year CARFAX Canada Used Vehicle Market Insights Report here: https://www.carfax.ca/media/carfax-canada-used-vehicle-market-insights-2026-08

About CARFAX Canada

CARFAX Canada, a part of Mobility Global (NYSE: MBGL), 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.

Connect with CARFAX Canada on Instagram, Facebook and LinkedIn.

____________________

^1 S&P Mobility, June ‘26