The AutoTrader Price Index provides a quarterly snapshot of Canada’s automotive market, analyzing nationwide new and used vehicle pricing, consumer demand, inventory trends, and popular models. Since March, both markets have been influenced by a “pull-forward” effect from anticipated tariffs, with buyers accelerating purchases ahead of potential price hikes. Used car prices have risen for four straight months — contrary to typical seasonal declines — reaching an average of $37,664 in June, up 3.6% year-over-year, while new car prices dropped 3.5% to $64,445. Battery Electric Vehicle (BEV) prices have also fallen, with new BEVs down 9.9% and used BEVs down 7.9%, but the end of Canada’s federal EV incentive program has led to steep declines in Zero Emission Vehicle (ZEV) sales. The market’s short-term outlook remains uncertain, hinging on potential trade agreements and the reinstatement of EV incentives.

Inventory levels for both new and used vehicles remain tight. New car supply is shrinking due to high demand, uneven OEM availability, production cuts, and cautious dealer ordering, while used car shortages are tied to reduced new vehicle sales from 2020–2023 and increased demand. Some relief is coming from higher trade-in volumes and fewer exports due to tariffs, but major shifts aren’t expected soon. Monthly payments for both new and used vehicles are climbing in step with demand and constrained supply — a trend likely to persist unless market conditions change significantly.