CARFAX Canada finds used vehicle market continuing to stabalize

The used vehicle market in Canada continued to stabilize through June with the national average listing prices increasing 0.2% month-over-month, according to CARFAX Canada’s Mid-Year Used Market Insights update. 

Used car prices remained below last year’s levels (4.7%), reinforcing a gradual price normalization, the update adds. 

CARFAX found used vehicles with model year 2000 or newer listed at prices between $3,000 and $150,000. 

“After declining throughout much of 2025, pricing has largely stabilized during 2026,” the update states. “The last five months have remained within a relatively narrow range near $31,000–$31,500. This plateau suggests that increasing inventory is helping balance the market, but supply remains sufficiently constrained to prevent significant downward pricing pressure.”

The update found that about 32% of inventory carries a reported damage record, consistent with previous months. 

“While the average pricing gap narrowed modestly from June 2025, damage history continues to have a substantial impact on vehicle values,” the update states. 

Inventory growth accelerated, rising 15.5% month-over-month and 2.5% year-over-year, according to the update. 

The update also found that used EV pricing has continued its rebound from early 2026 lows, increasing in both May and June to $42,834, or 1.1% month-over-month. Yet, prices remained 1.7% below June 2025 levels. EV inventory also expanded but remained concentrated in higher-priced Tesla models. 

“Inventory growth is improving across EV and hybrid segments, though affordable entry-level used EV options remain relatively limited,” according to the update. “This continuing imbalance is helping support prices even as overall supply expands.”

Transaction activity remains subdued, CARFAX Canada reports. Used vehicle transactions totaled 277,361 units in June, increasing 1.3% month-over-month but declining 2.9% year-over-year. The data indicates demand has stabilized but has yet to return to 2025 levels, the update states. 

The Bank of Canada maintained its policy rate at 2.25% in July and cited trade-related uncertainty and elevated inflation risks. Affordability also remains the dominant factor influencing vehicle purchasing decisions, the update states. 

“Nevertheless, affordability appears to be improving gradually,” the update states. “Industry data suggests that easing prices and better inventory availability are helping support vehicle purchases, even as consumers remain cautious about larger financial commitments.” 

Looking ahead, three factors are likely to impact the used market throughout 2026: 

• • “Increased inventory levels;
  • “Continued affordability pressures stemming from elevated household costs and financing expenses; and
  • “Ongoing Canada-U.S. trade uncertainty and CUSMA (Canada-United States-Mexico Agreement) related negotiations.”

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Feature image courtesy of CARFAX Canada