A recent report from Clutch found that used vehicle prices in Canada have once again surged, as dealers face an electric vehicle rebate deadline and the risk of increased U.S. tariffs mount.
Data from the company’s June 2025 Used Car Pricing Report shows the average used car price in Canada rose again in June to reach $33,868 — up 1.6% month-over-month and 6.3% year-over-year. Clutch said this extends the market’s streak to seven consecutive months of price increases, while also signalling a return to a high-price-floor environment.
“Several key forces combined to drive June’s increase. In Quebec — historically one of Canada’s most affordable provinces for used vehicles — the temporary suspension and relaunch of the Roulez vert EV incentive caused shoppers to temporarily step back, leading to stagnant sales volumes but a rise in average prices,” said Clutch in its report.
They said the result muted Quebec’s typical effect of pulling down the national average, thereby leaving overall Canadian prices more exposed to the higher costs typically seen in the Western provinces. Clutch also noted that hybrid vehicles are still gaining in terms of market share and average price.
The market has also remained structurally tight; with fewer lease returns and trade-ins from 2020-2023 model year vehicles, dealers face less replenishment of nearly-new inventory, “keeping broad upward pressure on prices.”
“Analysts expect the supply of desirable 2-to-4-year-old vehicles to tighten further into 2026, a direct legacy of the 2020-2023 downturn in leasing and new vehicle production,” said Clutch in its report. “That mismatch — too many older trade-ins versus not enough late-model off-leases — will continue to shape the market’s trajectory, keeping average prices elevated and reinforcing the appeal of nearly-new units despite broader economic headwinds.”
The models with the biggest pricing impact on the used car market in Canada are: the Ford F-150, Chevrolet Silverado 1500, GMC Sierra 1500, Honda Civic, Mercedes-Benz C 300, Subaru WRX, and BMW X3 — among a few others.
