The average used car price in Canada was up $33,986 in August — 1.11% month-over-month and 7.78% year-over-year — reflecting shifts in consumer interest and the limited supply of sweet-spot vehicles, according to online used car retailer Clutch.
Its August Used Car Report found the used-vehicle market climbed to its highest point since 2023, as consumers remain “payment-sensitive” during an uncertain Bank of Canada rate path. At the same time, Clutch said rebates on new electric vehicles have dried up, and many OEMs have flagged higher MSRPs for 2026 model years thanks to tariffs and production costs. And that’s not including the impact of the supply side.
“Last August marked the low of 2024; this August set the year’s high. That’s a full year of rising prices, a familiar story from the not-too-distant used-car inflation that emerged in 2020,” said Clutch in its report. “However, this time around, the mechanics are different from the pandemic wave of inflation.”
“Back then, we saw all used vehicle models shoot up in price due to new vehicle production being put on pause. Now, the lift comes from what’s selling: a heavier blend of SUVs and electrified models, plus a bigger slice of late-model 2024-2025 inventory,” he added.
Clutch explained that pandemic-era inflation was reduced in 2024. Then the mix of available vehicles shifted towards more expensive models. Through the prior year, SUVs, hybrids, and EVs enjoyed market share growth, shifting the average selling price higher.
Add to this, Clutch also noted that fewer 2020-2023 vehicles are cycling through, which they described as an “echo” of pandemic production cuts. This means car shoppers are seeing pricier vehicles by default. “Newer, better-equipped units naturally carry higher transaction prices; as they represent a larger share, the line climbs even when like-for-like prices don’t.”
On body style, Clutch said cars clawed back share MoM, though SUVs still enjoyed the largest share gain compared to 2024. Prices were up across all three segments both MoM and YoY. “What’s doing the lifting isn’t broad markups so much as composition: larger and more premium models are taking more of the pie.”
In August, they said the “mix” effect did most of the work; “like-for-like prices were roughly flat to slightly softer.”
The full report is available here.
