Canada’s used car market is changing fast, reshaping how buyers and sellers navigate it. While things are stabilizing after a few bumpy years, new challenges and opportunities are popping up.
Prices Are on the Rise
After big price drops in 2024, 2025 is telling a different story. By May, the average price for a used car hit $33,221, marking six months of steady increases and a 2.56% jump from last year. Prices are creeping up, especially on popular models, so buyers should be ready to act fast. Sellers, on the other hand, are seeing better valuations compared to last year’s lows.
SUVs Take the Lead
SUVs are still the king of the Canadian market. They dominate over 50% of the used car for sale market and strong growth is predicted through 2030. Used EV prices are a bit unpredictable right now, thanks to trade-ins and changing provincial incentives.
Interest Rates Bring Mixed News
The Bank of Canada cut rates by 200 basis points since mid-2024, bringing the policy rate down to 3%. That’s good news for new car loans, which dropped to 5.3%, but used car financing is still pricey, hovering around 8-10%.
Trade Tensions Add Uncertainty
New U.S. tariffs on Canadian auto exports (and Canada’s counter-tariffs) could shake things up. While only 9% of vehicles are directly affected, supply chain issues could impact availability and prices for certain models.
Also Read – Expert Advice to Navigate the Used Car Market in Canada
Get Smart About Used Car Buying
There are many trends developing in the used car market in Canada. To stay on top of the competition, buyers must remain vigilant. It’s critical to move fast on the car you want because inventory is getting tight. Now more than ever, a professional pre-purchase inspection can give you peace of mind before making a purchase.
With certified pre-purchase inspections available in Alberta, BC, Quebec, Ontario, Manitoba, Nova Scotia, and Saskatchewan, we at Greasemonkey Inspectors have you covered. Allow us to assist you in making wise choices in this dynamic market!