CARFAX Canada has released its Q1 Used Vehicle Market Insights report
CARFAX Canada has released its Q1 Used Vehicle Market Insights report, offering a comprehensive and data-driven look into the evolving dynamics of Canada’s used vehicle sector. At a time when the automotive marketplace is becoming increasingly complex—shaped by shifting consumer preferences, supply chain recovery, and emerging technologies—this latest report provides critical intelligence designed to help dealers, buyers, and industry stakeholders make informed decisions with greater confidence.
Drawing from one of the largest repositories of vehicle data in the world, the insights are powered by billions of North American vehicle records. This immense dataset enables CARFAX Canada to present a detailed and nuanced view of the market, including trends in inventory levels, fluctuations in national average listing prices, and consumer interest reflected in the most searched vehicle models. The result is a robust snapshot of a market that is steadily stabilizing after years of disruption, yet still facing pockets of volatility.
According to Shawn Vording, President of CARFAX Canada, the scale and depth of the data underpinning the report are what truly set it apart. He emphasized that access to billions of records allows the organization to deliver a level of market intelligence that is unmatched, empowering automotive professionals with the clarity needed to navigate uncertainty and make smarter strategic decisions.
One of the most notable findings from the Q1 report is the trajectory of used vehicle pricing. In March, the national average listing price reached $31,907. This represents a modest increase of 0.5% compared to February, suggesting that prices are continuing a gradual upward trend seen since late 2025. However, when viewed on a year-over-year basis, prices are actually down 2.3%, indicating that the market is beginning to stabilize after the sharp fluctuations experienced in previous years. This dual trend—short-term growth paired with annual decline—highlights a transition toward normalization as supply constraints ease and pricing pressures soften.
Inventory levels provide further evidence of this normalization. March saw a significant 31.6% increase in used vehicle inventory compared to February, alongside a 3.1% rise year-over-year. This surge in supply aligns with the onset of the spring selling season, a traditionally active period for automotive sales. The growing inventory suggests that dealers are better positioned to meet consumer demand, reducing the scarcity that once drove prices higher.
A key driver of this inventory growth is the continued dominance of sport utility vehicles. SUVs now account for 55.3% of all used vehicle listings, up from 51.1% a year earlier. This steady increase underscores a clear and sustained shift in consumer preference. Buyers are increasingly drawn to SUVs for their versatility, larger cargo capacity, and perceived safety advantages. Whether for families, outdoor enthusiasts, or commuters seeking a higher driving position, SUVs have become the preferred choice across multiple demographics.
In contrast, passenger cars are losing ground. Their share of used vehicle listings has dropped to 27.0% in March, down from 30.6% the previous year. This decline is accompanied by a 4.3% year-over-year decrease in average pricing for passenger cars, reflecting weaker demand. While sedans and compact cars still serve an important role—particularly for budget-conscious buyers and urban drivers—their diminishing popularity signals a broader transformation in how consumers prioritize vehicle attributes.
Another segment experiencing significant change is the electric vehicle (EV) market. Used EV prices have fallen by 6.5% year-over-year, highlighting ongoing volatility in this rapidly evolving category. Several factors are contributing to this trend, including policy developments, technological advancements, and shifting supply dynamics. The federal government’s Electric Vehicle Affordability Program, now fully implemented, is influencing both new and used EV markets by making electric mobility more accessible to consumers.
At the same time, the prospect of increased supply from international manufacturers is adding another layer of uncertainty. Canada’s decision to reopen its market to Chinese EV manufacturers at a reduced tariff rate of 6.1% has sparked discussions about future competition and pricing pressures. Companies such as BYD and Geely are often cited as potential disruptors due to their ability to produce lower-cost electric vehicles. However, the report notes that these more affordable models are unlikely to enter the Canadian market in significant volumes until around 2027. Until then, the EV segment is expected to remain unpredictable, with price fluctuations driven by both policy incentives and evolving consumer adoption patterns.
Regional variations further illustrate the complexity of Canada’s used vehicle market. Western provinces continue to record the highest average listing prices in the country. This trend is partly driven by strong demand for trucks and SUVs, which are well-suited to the region’s geography and lifestyle needs. Higher overall living costs in these provinces also contribute to elevated vehicle prices.
In contrast, the Atlantic provinces and Quebec remain the most affordable markets for used vehicles. These regions typically experience lower demand pressures and different consumer preferences, resulting in more competitive pricing. For buyers, this regional disparity can present opportunities to find better deals, while for dealers, it underscores the importance of tailoring inventory and pricing strategies to local market conditions.
As the spring selling season gains momentum, the insights provided by CARFAX Canada point to a market that is regaining balance. The sharp price spikes and inventory shortages that characterized recent years are giving way to more predictable patterns. Increased supply is helping to moderate prices, while consumer preferences are becoming more clearly defined, particularly in favor of SUVs.
However, the report also highlights that stability does not equate to simplicity. The automotive landscape remains influenced by a range of external factors, from government policies and global manufacturing trends to technological advancements in electrification. For industry participants, this means that success will depend not only on understanding current conditions but also on anticipating future shifts.
The value of data-driven insights in this environment cannot be overstated. By leveraging its extensive database, CARFAX Canada is providing stakeholders with a powerful tool to decode market signals and refine their strategies. Dealers can use these insights to optimize inventory mix, adjust pricing, and better align with consumer demand. Buyers, on the other hand, can gain a clearer understanding of market conditions, helping them make more informed purchasing decisions.
Ultimately, the Q1 Used Vehicle Market Insights report serves as both a reflection of where the market stands today and a guide to where it may be heading. It reveals a sector in transition—moving toward greater stability but still shaped by evolving trends and emerging uncertainties. For anyone involved in the automotive ecosystem, from retailers to policymakers, staying informed through reliable, data-backed analysis will be essential in navigating the road ahead.
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