How Canadians Used, Drove, and Wore Out Their Vehicles in 2025
CARFAX Canada has released its 2025 Year in Rear View report, offering a detailed look at what was really happening behind the scenes in the Canadian used vehicle market. Drawing from millions of Vehicle History Reports generated between September 30, 2024, and October 1, 2025, the report highlights how accidents, severe weather, outstanding liens, and even identification number (VIN) fraud continue to shape the decisions and risks faced by used car buyers across the country.
At its core, the report delivers a simple but powerful message: in today’s market, checking a vehicle’s history is not optional—it’s essential.
CARFAX Canada President Shawn Vording emphasizes this point, noting that buyers who skip this step are taking on serious and often avoidable risk.
According to Vording, the data shows “critical issues buyers should be aware of when shopping in the used car market—from accidents and weather damage to money owing and fraud.” He stresses that one of the first steps in any used purchase should be to check both the vehicle’s history and its lien status, or buyers could “risk ending up with a major headache.”
The 2025 report breaks down the year’s major themes into several key areas: accidents and damage, the cost of extreme weather, financial risk from money owing, and the growing problem of VIN fraud.
1. Accidents and Damage: 1 in 4 Vehicles Affected
One of the most striking findings in the 2025 Year in Rear View is just how common accident history has become in the used pool.
- 1 in 4 vehicles checked through CARFAX Canada had an accident or damage incident in its past.
- The total value of accident claim damage recorded on Vehicle History Reports in 2025 exceeded $9.2 billion.
- This represents a 21% increase in total accident claim damage compared with 2024, highlighting both the growing costs of vehicle repairs and the importance of knowing what a car has been through before buying it.
- In total, more than 600,000 vehicles appearing in CARFAX Canada reports had at least one accident on record.
These figures underline that a “clean-looking” vehicle can still have a complicated past, and that repairs, even when properly completed, can affect long-term performance, safety, and resale value.
Record Days for Accidents and Claims
The report also pinpoints specific days where accidents and claims spiked:
- February 18, 2025 was the busiest day for accident records, with over 1,000 individual incidents reported.
- January 28, 2025 turned out to be the most expensive day for accident claims, with payouts totaling more than $12.2 million.
These snapshot dates reflect how quickly damage-related costs can add up, particularly during periods of challenging driving conditions such as winter storms, icy roads, or poor visibility.
2. Weather-Related Damage: The Cost of Canada’s Climate
Beyond collisions, the 2025 data paints a picture of how severe weather is increasingly affecting vehicles and, by extension, the wallets of Canadian drivers and buyers.
CARFAX Canada identified over 50,000 vehicles in its reports that had experienced severe weather-related damage. This type of damage can include:
- Hail impacts
- Wind damage
- Flood or water intrusion
- Storm-related debris damage
These incidents often lead to costly repairs, structural or cosmetic issues, and, if not addressed properly, long-term reliability concerns.
Hail Damage: Alberta Dominates the Numbers
Hailstorms were once again a major driver of claim costs in Canada, and Alberta stands out by a wide margin.
The top three provinces for the most expensive hail-related claims are:
- Alberta – approximately $414.8 million in hail-related claims
- Ontario – around $37.4 million
- Quebec – about $1.56 million
Looking at overall weather-related damages (not just hail):
- Alberta recorded over $454 million in weather-related vehicle claims, with 91% of that total linked directly to hail.
- Ontario followed with more than $50.3 million in weather-related repair claims.
- Quebec ranked third with around $1.6 million in such repairs.
These figures highlight how regional weather patterns shape the risk profile in the used market. Vehicles from hail-heavy regions may have undergone extensive body repairs or cosmetic refinishing, which buyers should be aware of and inspect carefully.
Wind Damage: Another Hidden Cost
Wind storms also generated significant claim activity in 2025. The provinces with the most expensive wind-related claims were:
- Alberta – about $39.9 million
- Ontario – roughly $11.8 million
- Nova Scotia – approximately $1.16 million
Flying debris, falling trees, and structural damage from wind events can leave behind problems that aren’t always obvious from a quick visual once-over. A comprehensive Vehicle History Report helps reveal these prior incidents so buyers can ask the right questions and have vehicles professionally inspected.
3. Money Owing: 40% of Vehicles Show Liens
Beyond physical damage, the financial history of a used vehicle is another critical piece of the puzzle. CARFAX Canada’s 2025 data shows that liens—outstanding loans or financial claims attached to vehicles—remain widespread.
- 40% of all lien checks conducted through CARFAX Canada showed money still owing on the vehicle.
This is a major concern because if a buyer purchases a vehicle with an undisclosed lien and the debt is not paid off, the lender may have legal rights to the vehicle, even after the new owner takes possession and pays the seller. That can lead to legal disputes, repossessions, or unexpected bills for buyers who thought they were making a clean purchase.
The 2025 Year in Rear View reinforces that checking for liens should be considered just as important as checking for accidents or damage. A proper report that includes lien status can save buyers from inheriting somebody else’s debt.
4. VIN Fraud: A Growing Threat in the Used Market
While accidents, damage, and liens are serious, the report also warns about a more deceptive risk: VIN fraud, particularly VIN cloning.
VIN cloning occurs when criminals take the identification number from a legitimate vehicle and apply it to a stolen or rebuilt vehicle. The cloned car is then sold to unsuspecting buyers who may not realize that its identity has been falsified.
Shawn Vording underlines that Canadians must remain vigilant about VIN fraud, as it affects:
- Used car buyers
- Existing vehicle owners
- Dealerships
- Insurance providers
CARFAX Canada estimates that there are over 372,000 vehicles in Canada with potentially cloned VINs. That number underscores how sophisticated and widespread fraud has become, and why tools such as a VIN Fraud Check are no longer “nice-to-have,” but essential safeguards.
By cross-referencing billions of data records, CARFAX Canada’s systems can help flag irregularities that might point to a cloned VIN or suspicious activity, giving buyers an extra layer of protection.
5. Additional Highlights and “Fun Facts” from 2025
Alongside the serious statistics, the 2025 Year in Rear View also surfaces some lighter and interesting details about Canadian vehicle preferences and usage.
Canada’s Favourite Vehicle Colours
When it comes to colour choice, Canadians showed consistent preferences in 2025:
- White
- Black
- Gray
These three shades remain the most popular vehicle colours in the country, reflecting a national preference for neutral, timeless tones that tend to hold resale value well and appeal to a broad range of buyers.
The Highest Odometer Reading of the Year
One standout Vehicle History Report in 2025 featured a 2015 GMC Savana that clocked a staggering 995,761 kilometres.
That’s nearly a million kilometres—a testament to the durability of some commercial and fleet vehicles and a reminder that mileage, maintenance history, and usage type are all important factors to review when considering a used vehicle.
6. Why Vehicle History Matters More Than Ever
Taken together, the 2025 Year in Rear View paints a clear picture of a used vehicle market where risk and complexity are increasing, but where buyers also have powerful tools at their disposal.
CARFAX Canada stresses that:
- Checking a Vehicle History Report is no longer just a “good idea”—it is critical due diligence.
- Skipping this step can expose buyers to:
- Costly mechanical problems tied to prior accidents or neglect
- Hidden structural or weather-related damage
- Outstanding liens and financial claims
- Fraud-related issues such as cloned VINs
- These risks can threaten safety, erode trust, and cost thousands of dollars in unexpected repairs, legal fees, or even loss of the vehicle.
By leveraging its access to billions of data records, CARFAX Canada aims to give Canadians a clearer picture of the vehicles they’re considering, empowering them to make better, safer, and more confident decisions.
7. Tools for Canadian Buyers: Reports and Fraud Checks
To help address the challenges highlighted in the report, CARFAX Canada offers a range of tools designed specifically for the used vehicle market, including:
- CARFAX Canada Vehicle History Reports, which compile information on:
- Previous accidents and damage
- Insurance claims
- Odometer readings
- Registration and branding status
- Service history (where available)
- Other critical historical data
- VIN Fraud Check, which helps detect:
- Possible VIN cloning
- Suspicious record patterns
- Inconsistencies in registration or usage data
These tools, used together, create a far more complete picture of a vehicle’s past than a visual inspection or test drive alone can provide.
Canadian consumers, dealers, and industry partners can visit carfax.ca to learn more about these solutions and how they can reduce risk when buying or selling used vehicles.
8. A Clear Takeaway for 2025 and Beyond
The 2025 Year in Rear View isn’t just a collection of statistics—it’s a wake-up call and a practical guide rolled into one. With:
- Billions of dollars in accident and weather-related claims
- 1 in 4 vehicles showing accident or damage history
- 40% of vehicles checked still carrying outstanding liens
- And hundreds of thousands of vehicles potentially affected by VIN cloning
…the message is unmistakable: buying a used vehicle in Canada requires informed caution.
For buyers, dealers, and insurers alike, the report highlights the growing importance of trust, transparency, and thorough research. As CARFAX Canada continues to gather and analyze massive volumes of data, its insights help Canadians navigate an increasingly complex market—keeping them safer on the road and better protected at the point of purchas.
Source Link:https://www.businesswire.com/
