Canadians are still spending, but the mix of what they’re buying is expected to keep pushing the used-car market in a more expensive direction in 2026, according to predictions from used-vehicle retailer Clutch.
They expect average used-vehicle selling prices to edge higher, not because of sudden sticker shock, but because shoppers continue to gravitate toward newer, larger and more premium vehicles, even as normal depreciation continues within individual segments. The retailer also forecasts the long-running shift away from sedans will accelerate, with SUVs and crossovers continuing to crowd out cars and reshaping the used-vehicle landscape toward utility-style inventory.
Electrified vehicles are also expected to gain share. Based on Clutch, hybrids and EVs are poised for another year of growth. However, the company noted that policy will determine how quickly that happens. The pace is tied to the federal government’s EV strategy review, as well as how quickly provinces align incentives and charging infrastructure.
At the lower end of the market, affordability remains the biggest constraint. Clutch predicts the sub-$20,000 segment will stay supply-tight, dominated by older vehicles, as newer models remain priced out of reach for many buyers. Consumer confidence is expected to be the key swing factor. The company noted that if sentiment weakens, depreciation could accelerate. But if confidence holds, used prices may remain more resilient than expected.
Overall, “mixed” is becoming the pricing story. Stores heavy on sedans and low-end inventory could feel margin pressure, while dealers positioned for SUV demand and value-focused electrified options may see stronger turns — especially if policy support stays intact.
