A new report from Clutch reveals the price of used vehicles in Canada increased to $33,197 in March, which is up 0.61 per cent month-over-month but still down 2.65 per cent year-over-year.
The report notes that prices cooled steadily throughout 2024, but that there are now early signs of a rebound. These signs are coming at a time when the market is adjusting to ongoing supply constraints and economic uncertainty from U.S. tariffs.
“After a steady decline throughout 2024, used car prices in Canada are beginning to climb again,” said Clutch in its report, adding that March showed a continued trend of price increases this year. “Several factors are driving this upward pressure, despite broader year-over-year declines.”
One of the main factors is the ongoing used vehicle supply shortage, which Clutch said is down nearly 15 per cent compared to the same period last year. New vehicle prices are also high and there are fewer and fewer entry-level options, which also play a role.
“Concerns about future tariffs and global supply chain disruptions are also creating uncertainty in the market, prompting buyers to act now before prices climb further,” said Clutch.
They said consumers are seeing the highest average prices for used vehicles in the western provinces, like British Columbia and Alberta, while Quebec and Atlantic provinces have more budget-friendly options. One example from March is the sharp year-over-year decline in truck prices in Ontario, where Clutch said average values have dropped more than in any other region in the province. They said this less-than-subtle-trend signals a “meaningful shift” in the segment.
“In Ontario, a significant portion of used truck inventory is typically exported to the U.S., but softness in the export market — likely driven by tariff concerns and cross-border uncertainty — is applying downward pressure on prices locally. Combined with increased inventory and tighter domestic demand, the result is the same: used trucks in Ontario are more affordable now compared to last year.”
As for electric vehicles, they continue to see significant price declines — especially in Quebec and Ontario. (The former is slowly phasing out its provincial EV rebates.) Prices are slowly declining as more mass-market options are made available to consumers.
