Recent data from AutoTrader reveals pricing shifts in used and new vehicles that, in addition to evolving consumer preferences, are bound to significantly impact the market this year.
The data showed the average price of used vehicles, as of January, was $36,899 — down 5.7% year-over-year. It also highlighted a drop in new vehicle prices, by 2.9% YoY, averaging $65,317 in the first month of 2025.
The company found that SUVs continue to be in strong demand. Based on its Automotive Trends Outlook, SUV inventory grew by 43% YoY. However, cars — which saw a slight dip of 2% in search share — account for nearly half (49%) of all vehicle searches on AutoTrader.
Electric vehicle adoption is also rising, with searches up 9% in 2024, now representing 8% of total searches. Regional incentives helped drive EV interest and made up 11% of searches in British Columbia and 10% in Quebec. Of course, with dried-up federal rebates and plans to do away with provincial incentives, those numbers may look very different in 2025. Hybrids are also gaining traction, with 62% of EV intenders eyeing HEVs and 60% exploring PHEVs, compared to 50% for BEVs.
Overall, AutoTrader’s data shows consumer vehicle purchase intentions continue to hold steady: 27% of Canadians plan to buy a vehicle in the next 6 months, up from 26% in 2023. And 53% are optimistic their finances will improve over that period, and increase from 45% in 2023. Also, consumers are cross-shopping — with 47% of used car buyers eyeing new vehicles, and 36% of new car buyers considering used options.
The company plans to track how all of these trends unfold and shape consumer behaviour and the broader automotive landscape.
