Affordability rules Canada’s car market

New data from AutoTrader shows affordability, not aspiration, shaped Canadian car-shopping behaviour this year, as practical vehicles again topped both search and sales activity nationwide.

The Ford F-150, Toyota RAV4 and Honda Civic led AutoTrader’s 2025 most-searched rankings, while the F-150, RAV4 and Honda CR-V topped the list of most-sold vehicles. Luxury models continued to fall out of favour, with luxury searches down 11 per cent year-over-year and no premium vehicles appearing on the Top Sold list.

“After a year of significant change in the Canadian automotive market, it’s no surprise that this year’s data highlights affordability as a key driver of Canadians’ vehicle choices,” said Thomas Krauße, Chief Marketing Officer at AutoTrader, in a statement. “Even as shoppers browse aspirationally, what ultimately ends up in their driveways tends to be far more grounded.”

Rising interest rates, shifting tariffs, and ongoing supply pressures contributed to the trend, according to AutoTrader’s annual market analysis. The company also pointed to early signs of price stabilization, with new vehicle prices down nearly three per cent year-over-year. Used pricing remains up, but there are signs of easing as inventory improves.

Provincial data highlights a similar pattern: trucks dominate in the Prairies, sedans hold in Ontario and Quebec, and SUVs strengthen across most regions. EV interest rose modestly, now nine per cent of all searches, but meaningful adoption remains slow as consumers gravitate toward hybrids and plug-in hybrids.

Stable pricing and improving inventory suggest a more predictable sales environment heading into 2026. Continued demand for mainstream trucks, SUVs, and crossovers reinforces the importance of stocking high-turn, value-oriented models. Hybrid consideration is rising, signalling an opportunity for dealers to lean into electrified powertrains even as BEV demand moderates.

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